Transfer to Avoid Termination Event - ISDA Provision: Difference between revisions
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Once the {{isdaprov|Waiting Period}} expires, it will be a {{isdaprov|Termination Event}} entitling either party to terminate some or all {{isdaprov|Affected Transactions}}. Partial termination is permitted because the impact on an event on each {{isdaprov|Transaction}} may differ from case to case (eg transactions forming part of a structured financing like a repack or a CDO) might not be easily replaced, so the disadvantages of terminating may outweight the advantages. | Once the {{isdaprov|Waiting Period}} expires, it will be a {{isdaprov|Termination Event}} entitling either party to terminate some or all {{isdaprov|Affected Transactions}}. Partial termination is permitted because the impact on an event on each {{isdaprov|Transaction}} may differ from case to case (eg transactions forming part of a structured financing like a repack or a CDO) might not be easily replaced, so the disadvantages of terminating may outweight the advantages. | ||
Note though that if an {{isdaprov| | Note though that if an {{isdaprov|Non-Affected Party}} does elect partial termination, the {{isdaprov|Affected Party}} has the right to terminate some or all of the remaining {{isdaprov|Transactions}}: this prevents {{isdaprov|Non-Affected Parties}} being opportunistic. Heaven forfend. |
Revision as of 11:59, 7 August 2018
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Note in the 2002 ISDA there is no reference here to Illegality (or for that matter Force Majeure, which did not exist under the 1992 ISDA but would have been included in this provision of the 1992 if it had.... if you see what I mean).
Once the Waiting Period expires, it will be a Termination Event entitling either party to terminate some or all Affected Transactions. Partial termination is permitted because the impact on an event on each Transaction may differ from case to case (eg transactions forming part of a structured financing like a repack or a CDO) might not be easily replaced, so the disadvantages of terminating may outweight the advantages.
Note though that if an Non-Affected Party does elect partial termination, the Affected Party has the right to terminate some or all of the remaining Transactions: this prevents Non-Affected Parties being opportunistic. Heaven forfend.