Threshold Amount - ISDA Provision: Difference between revisions

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	{{~~isdaanat~~\|Threshold Amount}}		{{manual\|MI\|2002\|Threshold Amount\|Section\|Threshold Amount\|medium}}
	~~A key feature of the {{isdaprov~~\|~~Cross Default}} {{isdaprov~~\|~~Event of Default}} in the {{isdama}}. This is the level over which accumulated [[indebtedness]] defaults comprise an {{isdaprov\|Event of Default}}. Because of the [[snowball effect]] that a {{tag~~\|~~cross default~~}} ~~clause can have, it needs to be high. for a bank, typically 2 or 3% of [[shareholder’s equity]] or USD100,000,000 - for a fund an equivalent portion of [[NAV]].~~