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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Brexit: The UK's departure from the EU on exit day ie Friday 31 January 2020 has implications for practitioners dealing with provisions in the CPR relevant to cross border matters, including CPR 5.4C (discussed below). For guidance on the impact of Brexit on the CPR, see Cross border
Lawful arrest—human rightsThe right to liberty is a fundamental principle of the Human Rights Act 1998 (HRA 1998), which itself gives effect to the rights contained in the European Convention on Human Rights (ECHR) (see Practice Note: An introduction to the Human Rights Act 1998). The exercise of
What is quia timet relief?Injunctions are generally awarded where a party has already suffered a wrong. For guidance on injunctions generally, see Practice Note: Injunctions—guiding principles. However, an injunction may be sought before a party's rights have been infringed on the basis that they
The ‘handling’ offenceHandling stolen goods is an offence that is triable either way.The elements of the offence are:•dishonestly receiving the goods, or•dishonestly undertaking or assisting in their retention, removal, disposal or realisation by or for the benefit of another person, or arranging to
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