82,891
edits
Termination - ISDA Give-Up provision: Difference between revisions
Termination - ISDA Give-Up provision (view source)
Revision as of 18:13, 21 October 2016
, 21 October 2016→See also
Amwelladmin (talk | contribs) (Created page with "{{box| Section 4. Termination. This Agreement or any Designation Notice shall remain in effect unless and until terminated by Prime Broker or Dealer. Such termination notice...") |
Amwelladmin (talk | contribs) |
||
| (10 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
''The [[2005 ISDA Master Give-Up Agreement]]'' | |||
You are going to wish you never asked. | |||
You may terminate a give-up by giving notice. Terminating won’t affect live transactions. If {{isdaprov|AET}} applies to ''either'' party in your {{isdama}}, give-ups will terminate automatically on an {{isdaprov|Event of Default}} causing [[automatic early termination]]. Termination is effective, depending on what you've elected in {{prov|{{igu}}|Part 5}} of the {{prov|{{igu}}|Schedule}} to the {{prov|{{igu}}|Agreement}}, a given number of hours after ''receipt'' of notice. Exactly what constitutes “receipt” is covered by Section {{prov|{{igu}}|5(a)}} of the {{prov|{{igu}}|Agreement}}. This may do your head in, be warned. So: | |||
*''When'', and with how much notice you may terminate: Section {{prov|{{igu}}|4}} ({{prov|{{igu}}|Termination}}). | |||
*''How'' you may notify termination, and when the ''termination notice'' is deemed effective: Section {{prov|{{igu}}|5(a)}} ( {{prov|{{igu}}|Delivery and Effectiveness of Communication}}). | |||
*''How long'' after your notice is effective, the termination of the Agreement is effective: {{prov|{{igu}}|Part 5}} of the {{prov|{{igu}}|Schedule}}. | |||
But enough from me - why don't you hear about it in gory detail, direct from the super-brow of {{isda}}: | |||
{{box| | {{box| | ||
Section 4. Termination. This Agreement or any Designation Notice shall remain in effect unless and until terminated by Prime Broker or Dealer. Such termination notice shall be delivered in accordance with one of the methods specified in Section 5(a) of this Agreement. Notwithstanding the provisions of Section 5 of this Agreement, such termination notice shall be effective in accordance with the period of time specified in Part 5 of the Schedule; provided, however, that no such termination shall be effective in respect of either: (a) an outstanding Accepted Transaction; or (b) a Counterparty Transaction that would not be a Problem Transaction and that was entered into prior to the effectiveness of such termination and as to which the Dealer Notice has been promptly sent to Prime Broker. This Agreement shall terminate immediately upon the occurrence of an Early Termination Date in respect of the ISDA Master Agreement between the parties if the parties have specified Automatic Early Termination as applying to either of the parties. | Section {{prov|{{igu}}|4}}. '''{{prov|{{igu}}|Termination}}'''. This {{prov|{{igu}}|Agreement}} or any {{prov|{{igu}}|Designation Notice}} shall remain in effect [[unless and until]] terminated by {{prov|{{igu}}|Prime Broker}} or {{prov|{{igu}}|Dealer}}. Such termination notice shall be delivered in accordance with one of the methods specified in Section {{prov|{{igu}}|5(a)}} of this {{prov|{{igu}}|Agreement}}. Notwithstanding the provisions of Section {{prov|{{igu}}|5}} of this {{prov|{{igu}}|Agreement}}, such termination notice shall be effective in accordance with the period of time specified in Part {{prov|{{igu}}|5}} of the {{prov|{{igu}}|Schedule}}; provided, however, that no such termination shall be effective in respect of either: (a) an outstanding {{prov|{{igu}}|Accepted Transaction}}; or (b) a {{prov|{{igu}}|Counterparty Transaction}} that would not be a {{prov|{{igu}}|Problem Transaction}} and that was entered into prior to the effectiveness of such termination and as to which the {{prov|{{igu}}|Dealer Notice}} has been promptly sent to {{prov|{{igu}}|Prime Broker}}. This {{prov|{{igu}}|Agreement}} shall terminate immediately upon the occurrence of an {{isdaprov|Early Termination Date}} in respect of the [[ISDA Master Agreement]] between the parties if the parties have specified {{isdaprov|Automatic Early Termination}} as applying to either of the partiesNotwithstanding the provisions of Section {{prov|{{igu}}|5}} of this {{prov|{{igu}}|Agreement}}, such termination notice shall be effective in accordance with the period of time specified in Part {{prov|{{igu}}|5}} of the {{prov|{{igu}}|Schedule}}; provided, however, that no such termination shall be effective in respect of either: (a) an outstanding {{prov|{{igu}}|Accepted Transaction}}; or (b) a {{prov|{{igu}}|Counterparty Transaction}} that would not be a {{prov|{{igu}}|Problem Transaction}} and that was entered into prior to the effectiveness of such termination and as to which the {{prov|{{igu}}|Dealer Notice}} has been promptly sent to {{prov|{{igu}}|Prime Broker}}. This {{prov|{{igu}}|Agreement}} shall terminate immediately upon the occurrence of an {{isdaprov|Early Termination Date}} in respect of the [[ISDA Master Agreement]] between the parties if the parties have specified {{isdaprov|Automatic Early Termination}} as applying to either of the parties}} | ||
}} | |||
Of course, the super-brow of {{isda}} has been known to sap a fellow’s very will to live. No fear, [[Amwell J]]'s un-patented, entirely unwarranted, cut-the-[[BS]] summary service is here for you: | |||
{{nuts|ISDA Give-Up|Termination}} | |||
{{ | {{giveupterminationboilerplate}} | ||