The following Banking & Finance practice note provides comprehensive and up to date legal information covering:
The 1992 and 2002 ISDA Master Agreements (the Master Agreements) are standard form documents produced by the International Swaps and Derivatives Association, Inc (ISDA).
In this Practice Note, references to Sections of a Master Agreement and Parts of a Schedule are references to the 2002 ISDA Master Agreement and Schedule unless otherwise stated.
For general information about negotiating ISDA Master Agreements, see: Introduction to negotiating ISDA documents.
Section 6 (Early Termination) of the Master Agreement sets out the consequences of an occurrence of an Event of Default or Termination Event as detailed in Section 5 (see Practice Note: Scope of the ISDA Master Agreement—Section 5 (Events of Default and Termination Events)).
Importantly, it sets out how the close out netting mechanism operates following an Event of Default or Termination Event.
Where a party has defaulted under Section 5(a) (Events of Default) of the Master Agreement, under Section 6(a) (Right to Terminate Following Event of Default) of the Master Agreement the Non-defaulting Party is entitled, within 20 days of receiving the termination notice, to designate a day which will be the Early Termination Date for all outstanding Transactions governed by that Master Agreement.
The election that Automatic Early Termination will apply in Part 1(e) of the Schedule has the effect of terminating outstanding Transactions immediately where the Event of Default
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Tipping off and prejudicing an investigationIt would undermine the benefit to the authorities if, a suspicious activity report (SAR) having been made, the alleged offender were to be made aware of the interest in their activities so that they could take steps to cover up their misdeeds or disappear.
Issue estoppel is a sub-species of the res judicata doctrine (see Practice Note: The doctrine of res judicata). In addition to the general key requirements for establishing a res judicata (see Practice Note: Key requirements to establish a res judicata), this Practice Note considers the specific
Overlapping insurance policesThere are various reasons why an insured may end up with overlapping insurance cover, whether deliberately or otherwise.Examples include the situation where the insured takes the benefit of other insurance arranged by another party or where, in the commercial world, risk
A declaratory judgment is a judgment identifying the rights, duties or obligations of one or more parties in a dispute. It is legally binding, but does not order any action by a party. A court may issue it alone or in conjunction with some other relief such as an injunction and can be granted on an
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