ÿþ<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "DTD/xhtml1-transitional.dtd"> <html> <head> <title>Deliverable Obligations under ISDA 2003 Credit Derivatives Definitions</title> <div http-equiv="Content-Type" content="text/html; charset=UTF-8" /> <meta name="keywords" content="ISDA 2003 credit derivatives definitions, Deliverable Obligations, Physical Settlement, Not Subordinated, Specified Currency, Not Sovereign Lender, Not Domestic Currency, Not Domestic Law, Listed, Not Contingent, Not Domestic Issuance, Assignable Loan, Consent Required Loan, Direct Loan Participation, Transferable, Maximum Maturity, Accelerated or Matured and Not Bearer" /> <meta name="description" content="This derivativeslawyer.com article explains the concept of Deliverable Obligation" /> <link rel=stylesheet type="text/css" href="derivativeslawyerorange.css"> </head> <div> <!-- Thanks BlueRobot. --> <!-- 1st Div COPYRIGHT SIGN FIRST. --> <div class="title" id="title"> <h4>&copy; 2005 derivativeslawyer.com</h4> </div> <!-- 2nd Div MAIN CONTENT. --> <div class="content"> <h3>Deliverable Obligations</h3> <p>If <a href="wp0004.html">Physical Settlement</a> is applicable, Obligations that could be delivered are:<br> <ul> <li>the <b>Reference Obligation</b> or any specified obligation</li> <li>Any Obligations that fulfil certain criteria set out in Section 2.20 and satisfy certain conditions discussed below</li> </ul><br></p> <p><b>Deliverable Obligation</b> other than the Reference Obligation must:<br> <ul> <li>be payable in any amount equal to its outstanding principal balance</li> <li>not be <i>conditional</i>, <i>i.e.</i> subject to any counterclaim, defence or set-off by the Reference Entity</li> </ul><br></p> <p>Where the Obligation is a guarantee (but not a guarantee issued for the benefit of a &lsquo;downstream&rsquo; affiliate), the seller must be able to immediately demand on the guarantee and the demand shall not be subject to first accelerating the guaranteed obligations.</p> <p>In addition, the parties may also specify the &lsquo;categories&rsquo; and &lsquo;characteristic&rsquo; of the Deliverable Obligation.</p> <p>The categories that may be specified include Payment, Borrowed Money, Reference Obligations Only, Bond, Loan, Bond or Loan, each as defined in Section 2.19(a). </p> <p>The characteristics that may be specified include Not Subordinated, Specified Currency, Not Sovereign Lender, Not Domestic Currency, Not Domestic Law, Listed, <a href="wp0002.html">Not Contingent</a>, Not Domestic Issuance, Assignable Loan, Consent Required Loan, Direct Loan Participation, Transferable, Maximum Maturity, Accelerated or Matured and Not Bearer.</p> <p><i>The above notes are intended to provide only general outlines and should be read in conjunction with, and are qualified in their entirety by, the full provisions of the relevant ISDA provisions and definitions. They should never be used in place of professional advice. We accept no responsibility for any loss arising from any action taken or not taken by anyone using this material or using this material in conjunction with any ISDA documentation in reliance thereof.</i></p> </div> <!-- 6th Div LEGAL NOTICE. PRIVACY & SECURITY STATEMENT ETC. --> <div class="content"> <div align="center"> <a href="index.html"title="derivativeslawyer.com front page.">Home</a> &nbsp;::&nbsp; <a href="aboutus.html"title="about derivativeslawyer.com.">About Us</a> &nbsp;::&nbsp; <a href="derivativesarticles.html" title="Your derivatives articles">Publications</a> &nbsp;::&nbsp; <a href="derivativeslinks.html" title="useful derivatives links.">Links</a> &nbsp;::&nbsp; <a href="derivativesmap.html" title="road map to derivativeslawyer.com.">Site Map</a> &nbsp;::&nbsp; <a href="derivativescareer.html" title="Succeed with derivativeslawyer.com.">Career</a> <br><br> &copy; 2005 derivativeslawyer.com &nbsp;::&nbsp;<a href="legal.html" title="Important terms governing use of this website.">Terms & Conditions </a>&nbsp;::&nbsp;<a href="privacy.html" title="Read about our privacy and security policy">Privacy & Security</a> </div> </div> <!-- 7th Div NAVIGATION BAR. --> <div id="navB2"> <h3>Navigation</h3> <p> <a href="index.html" title="Home">home</a><br> <a href="aboutus.html"title="about derivativeslawyer.com.">about Us</a><br> <a href="derivativesarticles.html" title="Some things you ought to know.">derivatives resources</a><br> <a href="derivativeslinks.html" title="useful derivatives links.">Links</a><br> <a href="derivativesmap.html" title="road map to derivativeslawyer.com.">Site Map</a><br> <a href="derivativescareer.html" title="Succeed with derivativeslawyer.com.">Career</a><br> </p> </div> <!-- 8th Div SEARCH BOX. --> <div id="navA"> <table> <tr><td><a href="index.html" target="_blank"><img src = "d2.jpg" alt="derivativeslawyer.com" width="128" height="100" border="0" /></a></td></tr> </table> </div> <!-- 9th Div E-COMMERCE BOX. --> <!-- 10th Div DocMatrix!! --> </div> </html>