One of the main signs of a customer`s financial deterioration for a trader is the appearance of a cross-failure of the customer with one of its other creditors. Under the agreement, there is a cross-delay in the entry or existence of a delay in «specified debt.» However, for this provision to be applicable, the parties must decide that the «crossdefault» system applies to one or both parties. The designated entity must place itself in an acceptable jurisdiction and have the necessary authorities and administrative authorizations to obtain transactions; In addition, many of the new types of commitments that are added to the specified debt definition, such as rests. B, are subject to technical failures. Although these technical failures are usually cured or eliminated in normal operations, they could allow an aggressive trader to terminate the contract after taking office. A client should insist that a cross-failure occur only when the other debt is cross-accelerated, as opposed to the existence of a single delay. Depending on the default language crossed in the agreement, a default may occur under another debt, whether or not the other creditor accelerates the declared debt. By requesting that default results in an acceleration of the underlying debt, a trader would not be able to terminate the contract until the other creditor has actually accelerated the declared debt. The inscription of our exclusive ISDA in a nutshellTM In a NutshellTM Section Specified Entity: «Specified Entity» is set in the calendar.
Model View 2002 Full ISDA text of the specified feature: «Specified entity» has the meaning indicated in the calendar. View template Click here for the text of the Entity section specified in ISDA 1992 Although there are many legal issues that concern the ISDA executive contract that are negotiated, the most likely problems are a minor customer contract with the termination of the agreement in case of financial difficulties.