Transfer to Avoid Termination Event - ISDA Provision: Difference between revisions

Transfer to Avoid Termination Event - ISDA Provision (view source)

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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\|~~Unaffected~~ 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\|~~Unaffected~~ Parties}} being opportunistic.		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.