|
|
| (11 intermediate revisions by the same user not shown) |
| Line 1: |
Line 1: |
| ==Termination Events and Events of Default==
| | {{newisdamanual|5(b)}} |
| {{isdaprov|Termination Events}} and {{isdaprov|Events of Default}} under an {{isdama}} are similar in that when they occur to one party (the {{isdaprov|Affected Party}} or {{isdaprov|Defaulting Party}}) the other may terminate outstanding trades under the agreement. A crucial difference between them is that events of default may give rise to third-party default rights (where the relevant {{isdaprov|Cross Default}} extends to derivatives and trading documents) but generally termination events under an ISDA Master Agreement with another dealer will not. | |
| | |
| Termination events are less likely (although sometimes they do) to trigger third-party defaults; however, they often will trigger termination rights that cut across all agreements with one dealer (i.e., {{isdaprov|Default Under Specified Transaction}}).
| |
| | |
| {{isdasnap|5(b)}}
| |
| ==Subsections to Section 5(b) {{isdama}}==
| |
| :(b) {{isdaprov|Termination Events}}
| |
| ::(i) {{isdaprov|Illegality}}
| |
| ::(ii) {{isdaprov|Tax Event}}
| |
| ::(ii) {{isdaprov|Force Majeure Event}} ([[2002 ISDA Master]] only)
| |
| ::(iii) {{isdaprov|Tax Event Upon Merger}}
| |
| ::(iv) {{isdaprov|Credit Event Upon Merger}}
| |
| ::(v) {{isdaprov|Additional Termination Event}}
| |
| :(c) {{isdaprov|Event of Default and Illegality}}
| |
| | |
| | |
| {{isdaanatomy}}
| |