events of default and termination events
a quick table
| section | brief description | remarks |
| 5(a) | Events of Default | |
| 5(a)(i) | failure to pay | must be remedied on or before 3rd local business days after failure notice |
| 5(a)(ii) | breach of agreement | must be remedied on or before 30th day after failure notice |
| 5(a)(iii) | credit support default | (1) failure to perform credit support document (CSD) (2) expiration or termination of CSD (3) CSD repudiated |
| 5(a)(iv) | misrepresentation | excluding representation in 3(e) or (f) |
| 5(a)(v) | default under specified transaction | a specified transaction is any transaction between the parties which is a swap transaction (but excluding e.g. a credit default swap under the 1992 version) |
| 5(a)(vi) | cross default | if specified to be applicable, will apply to the party, Credit Support Provider and
Specified Entity in relation to: (1) Specified Indebtedness (i.e. borrowed money obligation) not less than the Threshold Amount (Part 1(c) of the schedule) (2) default in payment in such agreement |
| 5(a)(vii) | bankruptcy | (1) dissolution (2) insolvent and unable to pay debt (3) general assignment to creditors (4) insolvency proceeding (5) winding-up resolution (6) appointment of administrator (7) distress or execution on assets (8) analogous events (9) acquiescence |
| 5(a)(viii) | merger without assumption | |
| 5(b) | Termination Events | |
| 5(b)(i) | illegality | the party affected by such illegality will be the “Affected Party” |
| 5(b)(ii) | tax event | due to e.g. Change in Tax Law, Indemnifiable Tax becomes payable |
| 5(b)(iii) | tax event upon merger | Burdened Party required to pay or receive an amount relating to e.g. Indemnifiable Tax |
| 5(b)(iv) | credit event upon merger | party or CSP or SE merger into subsidiary which creditworthiness is materially weaker |
| 5(b)(v) | additional termination events | as specified in the schedule |
derivativeslawyer.com
Last updated February 2007
^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.
