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| A [[termination event]] is a softer, gentler kind of [[event of default]]. | | A [[termination event]] is a softer, gentler kind of [[event of default]]. |
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| Popularised by those habitual splitters of hairs, [[Mediocre lawyer|ISDA lawyers]], {{isdaprov|Early Termination Event}}s are circumstances giving grounds to terminate an {{isdama}} that do not speak to the moral character or unacceptable [[creditworthiness]] of the {{isdaprov|Affected Party}} (so labelled, as opposed to a “{{isdaprov|Defaulting Party}}”, who ''is'' such a turpitudinous wretch).
| | {{no termination events}} |
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| So an {{isdaprov|Illegality}}, a {{isdaprov|Force Majeure}}, a {{isdaprov|Tax Event}}, a {{isdaprov|Tax Event Upon Merger}} or a {{isdaprov|Credit Event Upon Merger}} — all these things speak to the motion of [[Force majeure|vengeful gods above our mortal heads]]; seismic changes beyond our gift or capacity to control, and for whose provenance we can’t roundly be blamed.
| | {{sa}} |
| | | *{{isdaprov|Termination Events}} |
| There again, {{isdaprov|Additional Termination Event}}s — that category of other stuff thrown in for good measure by the [[credit]] department, and which are assured to foul up your negotiation for months — these are more naughty in their bearing, and “defaulty” — but they still roll like {{isdaprov|Termination Event}}s.
| | *{{gmraprov|Events of Default}} (GMRA) |
| | | *{{gmslaprov|Events of Default}} (GMLSA) |
| In most [[master trading agreement|master trading agreements]] this kind of dancing on a pinhead is of little moment and is scarcely to be encouraged (but let a creative [[credit officer]] loose on it, and you’ll be amazed what she can come up with), but the term, volatility and net exposure one can generate under an {{isdama}} make them a little special.
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| And we all like to feel a little special sometimes, don’t we?
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