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Section 5(a)(vii)(2) of the ISDA Master Agreements provides that an Event of Default will be triggered where a party becomes insolvent, is unable to pay its debts, or fails or admits in writing its inability generally to pay its debts as they become due.
What is automatic early termination?
Automatic Early Termination provision is triggered when a party to whom it applies suffers an in-scope Bankruptcy Event of Default. If it is triggered, all outstanding Transactions are instantly and automatically terminated, without the need for any action by or even the knowledge of the Non-Defaulting Party.
What is the event of default termination?
An event specified in a commercial agreement where a non-defaulting party can terminate the agreement.
What are the 4 parts of the ISDA Master Agreement?
The framework consists of a master agreement, a schedule, confirmations, definition booklets, and credit support documentation.
What is a termination event?
Definition of Terminating Event in the context of non-performance. This definition ties Terminating Event to non-performance by one party. Terminating Event means the failure of either party to perform any material obligation under the agreement, resulting in the termination of the contract.
What is the difference between end event and terminate end event?
A generic end event and an error end event terminate only the process flows they are attached to. A terminate end event terminates the entire process, including any sub-processes and process flows, even if these do not end in terminate end events.
What is the difference between termination event and event of default?
In short, the difference between an Event of Default and Termination Event is that in an Event of Default there is a party that can be blamed, whereas generally in a Termination Event, the event just happened or was outside a partys control.
What is meant by event of default?
Events of Default: Event of Default means (i) the failure of Buyer (or its guarantor) to make any payment required by the applicable due date; (ii) the failure of Buyer to provide satisfactory Credit Assurance (as defined below) to Seller; (iii) either Party (or its guarantor) is or becomes Bankrupt, and (iv) the
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