ISDA Credit Support Deed: security interest—English law
ISDA Credit Support Deed: security interest—English law

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • ISDA Credit Support Deed: security interest—English law
  • Documentation structure of the English law Deed
  • The English law Deed: a stand alone document
  • Dealing with inconsistencies in the documentation
  • Using an English law Deed with the 2002 form of master agreement
  • The nature of the English law Deed
  • A security interest
  • Recharacterisation risk: fixed or floating charge?
  • Registration?
  • Enforcement of the English law Deed
  • More...

ISDA Credit Support Deed: security interest—English law

Documentation structure of the English law Deed

The English law Deed: a stand alone document

The English law Deed is a stand alone document. It does not form part of the schedule to the master agreement and must be executed in its own right as a deed. It must be dated as of the date of execution and all formalities connected with signing a deed must be complied with (for more information, see Practice Note: Executing deeds and simple contracts).

It is a credit support document (as defined in the ISDA master agreement).

The structure of the English law Deed follows the same format as the master agreement and schedule in that it combines standard wording that is not marked up, with a paragraph for elections and amendments. The provisions of an English law Deed are amended through the completion of the last paragraph (paragraph 13) where elections and variations can be made. The other paragraphs of an English law Deed are not marked-up or amended.

Historically, the English law Deed has been rarely used in practice—tending only to be used where the collateral is segregated or held by a custodian. However, the English law Deed has gained in popularity recently, following the recharacterisation risks of initial margin (or the Independent Amount) as an unperfected security interest.

Dealing with inconsistencies in the documentation

Where there

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