|
|
| (3 intermediate revisions by the same user not shown) |
| Line 1: |
Line 1: |
| {{isdaanat|Termination Currency Equivalent|}} | | {{isdamanual|Termination Currency Equivalent}} |
| A fabulous example of the English language getting the better of a committee of its own seasoned professional users, [[ISDA]]’s remarkable “{{isdaprov|Termination Currency Equivalent}}” definition erodes the fabric in which the basic assumptions of people who share a common language are woven.
| |
| | |
| They have managed to convolute, to the point of incomprehensibility, a concept well enough described by its own name. Who would labour under a serious doubt about this expression:
| |
| :“one party must pay the other the amount in its ''termination currency equivalent''”?
| |
| Failing that, how about this:
| |
| :“one party must pay the other ''an equivalent amount in the termination currency''”?
| |
| | |
| The idea of an amount in one currency of an amount expressed in another really oughtn’t to be ''that'' hard to master, but to see how hard someone with [[profound ontological uncertainty]] can make it, have a gander at this ==>
| |
| | |
| ===User guide===
| |
| Here’s what the [[Encyclopaedia Galactica]] has to say about {{isdaprov|Termination Currency Equivalent}}:
| |
| | |
| :Under the {{2002isda}}, a payment on early termination will be made in the {{isdaprov|Termination Currency}}. The “Termination Currency” must be specified in Part 1(f) of the [[ISDA Schedule|Schedule]] to the {{2002isda}} and, if not specified or the currency specified is not freely available, the fallback will be U.S. dollar for a 2002 Agreement governed by [[New York]] law, and the [[euro]] if a {{2002isda}} is governed by English law. The 1992 Agreement had a U.S. dollar fallback regardless of the governing law of the {{1992isda}}. In calculating amounts payable, any {{isdaprov|Close-out Amount}} or {{isdaprov|Unpaid Amount}} is converted to a “Termination Currency Equivalent” on the basis of an exchange rate determined in accordance with the {{2002isda}} by a foreign exchange agent.
| |