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Termination - ISDA Give-Up provision: Difference between revisions
Termination - ISDA Give-Up provision (view source)
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''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 {{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}} | 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}} | {{nuts|ISDA Give-Up|Termination}} | ||
{{giveupterminationboilerplate}} | |||