This Annex supplements, forms part of, and is subject to, the above-referenced Agreement, is part of its Schedule and is a Credit Support Document under this. 2 ISDA® (d) Substitutions. (i) Unless otherwise specified in Paragraph 13, upon notice to the Secured Party specifying the items of Posted Credit Support to . ISDA Credit Support Annex. The standard New York law pledge means of posting and receiving Credit Support under an ISDA Master.
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Credit Support Annex
The Interest Amount or portion thereof not Transferred pursuant to this Paragraph will constitute Posted Collateral in the form of Cash and will be subject to the security interest granted under Paragraph 2. Any Interest Amount or portion thereof not Transferred pursuant to Paragraph 6 d ii will constitute Posted Cresit in the form of Cash.
Treasury Department having a remaining maturity on such date of less than one year. The holding of Posted Collateral by a Custodian will be deemed to be the holding of that Posted Collateral by the Secured Party for which the Custodian is acting. Greater than 1 year but not more than 2 years. All references in this Annex to the “Secured Party” will be to either party when acting in that capacity and all corresponding references to the “Pledgor” will be to the other party when acting in that capacity; provided, however, that if Other Posted Support is held by a party to this Annex, all references herein to that party as the Secured Party with respect to that Other Posted Support will be to that party as the beneficiary thereof and will not subject that support or that party as the beneficiary thereof to provisions of law generally relating to security interests and secured parties.
Greater than 15 credjt but not more than 16 years.
Greater than 20 years but not more than 21 years. Treasury Department having a remaining maturity on such date of one year or more but less than five years. In the event of any inconsistency between this Annex and the other provisions of this Schedule, this Annex will prevail, and in the event of any inconsistency between Paragraph 13 and the other provisions of this Annex, Paragraph 13 will prevail.
In the event of any inconsistency between this Annex and the other provisions of this Schedule, this Annex will prevail, and in the event of any inconsistency between Paragraph anex and the other provisions of this Annex, Paragraph 13 will prevail.
Security Interest Each party, as the Pledgor, hereby pledges to the other party, as the Secured Party, as security for its Obligations, and grants to the Secured Party a first priority continuing security interest in, lien on and right of Set-off against all Posted Collateral Transferred to or received by the Secured Party hereunder.
Each party acknowledges and agrees that Isra Collateral crefit the form of securities may decline speedily in value and is of a type customarily sold on a recognized market, and, accordingly, the Pledgor is not entitled to prior notice of any sale of that Posted Collateral by the Secured Party, except any notice that is required under applicable law and cannot be waived. The Valuation Agent will notify each party or the other party, if the Valuation Agent is a party of suppport calculations not later than the Notification Time on the Local Business Day following the applicable Valuation Date or in the case of Paragraph 6 dfollowing the date of calculation.
Greater than 14 years but not more than 15 years. Promptly following a demand made by a party, the other party will execute, deliver, file and record any financing statement, specific assignment or other document and take any other suport that may be necessary or desirable and reasonably requested by that party to create, preserve, perfect or validate any security interest or lien granted under Paragraph 2, to enable that party to exercise or enforce its rights under this Annex with respect to Posted Credit Support or an Interest Snnex or to effect or document a release of a security interest on Posted Collateral or an Interest Amount.
The appropriate party will, upon demand following that notice by the Valuation Agent or a resolution pursuant to 3 above and subject to Paragraphs 4 a and 4 bmake the appropriate Transfer. The Pledgor will promptly give notice to the Secured Party of, and defend against, any suit, action, proceeding or lien that involves Posted Credit Support Transferred by the Pledgor or that could adversely affect the security interest and lien granted by it under Paragraph 2, unless that suit, action, proceeding or lien results from the exercise of the Secured Party’s rights under Paragraph 6 c.
Subject to Paragraph 4 aif the Secured Party receives or is deemed to receive Distributions on a Local Business Day, it will Transfer to the Pledgor not later than the following Local Business Day any Distributions it receives or is deemed to receive to the extent that a Delivery Amount would not be created or increased by that Issda, as calculated by the Valuation Agent and the date of calculation will be deemed to be a Valuation Date for this purpose.
Essentially, a CSA defines the terms or rules under which collateral is posted or transferred between swap counterparties to mitigate the credit risk arising from ” in the money ” derivative positions. In the event that the Threshold applicable to Party A has been reduced to zero, Party B shall open and maintain a segregated account, and hold, record and identify all Posted Collateral in such segregated account.
For the purpose of Paragraphs 5 i C and 5 iithe Value of Posted Credit Support will be calculated by the Valuation Agent in accordance with standard market practice. Expenses a General Except as otherwise provided in Paragraphs 10 b and 10 ceach party will pay its own costs and expenses in connection with performing its obligations under this Annex and neither party will be liable for any costs and expenses incurred by the other party in connection herewith.
Greater than 18 years but not more than 19 years. The provisions of Paragraph 6 d ii will apply.
ISDA® Credit Support Annex (CSA) | Practical Law
Miscellaneous a Default Interest A Secured Party that fails to make, when due, any Transfer of Posted Collateral or the Interest Amount will be obligated to pay the Pledgor to the extent permitted under applicable law an amount equal to interest at the Default Rate multiplied by the Value of the items of property that were required to be Transferred, from and including the date that Posted Collateral or Interest Amount was required to be Transferred to but excluding the date of Transfer of that Posted Collateral or Interest Amount.
This law -related article is a stub. Certain Rights and Remedies. This interest will be calculated on the basis of daily compounding and the actual number of days elapsed. Greater than 5 years but not more than 6 years.
Subject to Paragraphs 4 a and 5 and unless otherwise specified, if a demand for the Transfer of Eligible Credit Support or Posted Credit Support is made by the Notification Time, then the relevant Transfer will be made not later than the close of business on the next Local Business Day; if a demand is made after the Notification Time, then the relevant Transfer will be made not later than the close of business on the second Local Business Day thereafter.
Holding and Using Posted Collateral a Care of Posted Collateral Without limiting the Secured Party’s rights under Paragraph 6 cthe Secured Party will exercise reasonable care to assure the safe custody of all Posted Collateral to the extent required by applicable law, and in any event the Secured Party will be deemed to have exercised reasonable care if it exercises at least the same degree of care as it would exercise with respect to its own property.
If the Secured Party or its Custodian fails to satisfy any conditions for holding Posted Collateral, then upon a demand made by the Pledgor, the Secured Party will, not later than five Local Business Days after the demand, Transfer or cause its Custodian to Transfer all Posted Collateral held by it to a Custodian that satisfies those conditions or to the Secured Party if it satisfies those conditions.
Set-off any amounts payable by the Pledgor with respect to any Obligations against any Posted Collateral or the Cash equivalent of any Posted Collateral held by the Secured Party or any obligation of the Secured Party to Transfer that Posted Collateral ; and. If at any time 1 an Event of Default or Specified Condition with respect to the Pledgor has occurred and is continuing or 2 an Early Termination Date has occurred or been designated as annez result of an Event of Default or Specified Condition with respect to the Pledgor, then, unless the Pledgor has paid in full all of its Obligations that are then due, the Secured Party may exercise one or more of the following rights and remedies: Distributions will not include any item of property acquired by the Secured Party upon any disposition or liquidation of Posted Collateral or, with respect to any Posted Collateral in the form of Cash, any distributions on that iisda, unless otherwise specified herein.
The Delivery Amount will be rounded creeit and the Return Amount will be rounded down to the nearest integral multiple of USD 10, respectively. Retrieved from ” https: The Transfer of Interest Amount will be made on idda Distribution Date; providedhoweverthat the obligation of Party B to Transfer any Interest Amount to Party A shall be limited to the extent that Party B has earned and received such funds and such funds are available to Party B.
Return of Fungible Securities. The Secured Party will be liable for lsda acts or omissions of anndx Custodian to the same extent that the Secured Party would be liable hereunder for its own acts or omissions.
Interpretation a Definitions and Inconsistency. A “Delivery Amount” means, in lieu of the definition contained in Paragraph 3 awith respect to the Pledgor for any Valuation Date, the amount by which i the greater of 1 the Credit Support Amount, and 2 that amount required in order annfx be in full compliance with the provisions of Regulation T of the Board of Governors of the Federal Reserve System, Rule of the New York Stock Exchange, Regulation X of the Board of Governors of the Federal Reserve System and other applicable requirements including, without limitation, the internal policies of the Secured Party, exceeds ii the Value as of that Valuation Date of all Posted Credit Support held by the Secured Party.
Greater than 2 years but not more than 3 years. The Interest Amount or portion thereof not Transferred pursuant to this Paragraph will constitute Posted Collateral in the form of Cash and will be subject to the security interest granted under Paragraph 2.
ISDA® Credit Support Annex (CSA)
Distributions and Interest Amount. Greater than 13 years but not more than 14 years. The holding of Posted Collateral by a Custodian will be deemed to be the holding of that Suoport Collateral by the Secured Party for which the Custodian is acting. Definitions As used in this Annex: Holding and Using Posted Collateral.
The following Termination Event s will be a “Specified Condition” for the party specified that party being the Affected Party if the Termination Event occurs with respect to that party: The provisions of Paragraph 5 will apply, provided the obligation of the appropriate party to deliver the undisputed amount to the other party will suppory arise prior to the time that would otherwise have applied to the Transfer pursuant to, or deemed made, under Paragraph 3 if xredit dispute had arisen.
All calculations by the Valuation Agent must be made in accordance with standard market practice, including, in the event of a dispute as to the Value of any Eligible Credit Support or Posted Credit Support, by making reference to quotations received lsda the Valuation Agent from one or more Pricing Sources.