آخر تحديث - 9 أكتوبر 2021
If, on an evaluation date, the amount of the delivery is equal to or greater than the minimum amount of the transfer from the Pledgor, the Pledgor must transfer eligible guarantees of a value equal to or greater than the amount of the delivery. The amount of delivery shall be the amount of credit aid in excess of the value of all guarantees issued held by the secured party. The amount of credit aid shall be the commitment of the guaranteed party, plus the amounts independent of Pledgor, less the amounts independent of the guaranteed part less the pledgor threshold. Guarantees must meet the eligibility criteria of the agreement, for example. B in which currencies they may be found, what types of bonds are eligible and which haircuts are applied.  There are also rules for the settlement of disputes arising from the valuation of derivatives positions. A credit carrier annex (CSA) is a document defining the conditions for the provision of guarantees by the parties in the context of derivatives transactions. It is one of the four parts of a standard contract or framework contract developed by the International Derivatives and Exchange Association (ISDA). Part Three(b) concerns the provision of non-taxable documents and may often include the provision of a party`s constitutional documents and, in the case of a fund, the fund`s prospectus, investment management agreement, annual report and NAV returns. Negotiations generally focus on the date of delivery of the annual accounts and, as mentioned above, it is important to agree on reasonable deadlines.
Annual reports, for example, often have to be delivered within 90 days, but it`s common for accounts to be established for a smaller fund to take at least 4 months or more. Another requirement, often requested by funds, is the opinion of a lawyer and a letter from the Fund`s agent (who may be the investment manager depending on the jurisdiction) in which he agrees to act as a judicial agent. The standard CSA requires that collateral be transferred on the nearest local business day if the call occurs before the corresponding notification time (which may also be negotiated) or on the second local business day, if it occurs after the notification time. However, it is increasingly common for this provision to be amended to provide for transmission on the same day when the call is made before the corresponding notification time and on the next local working day, when it takes place after the notification time. Therefore, as already stated, it is of the utmost importance that a party accepts only what it can perform operationally, given that non-transmission can lead to a potential failure event. The International Swaps and Derivatives Association (ISDA) has developed a standard suite of documents that apply to all OTC derivatives transactions, to allow parties to trade OTC derivatives without having to trade and document each OTC transaction. Standard documents include: this collection of documents is a single agreement and this concept is an integral part of the application of the ISDA Framework Agreement and attempts to avoid what is commonly known as “raisin pecking”. The single agreement concept means that all transactions constitute a contract allowing counterparties to enter into those transactions in the event of default and to make the termination assets a single net amount to be paid between the parties. A Credit Carrier Annex (CSA) is a legal document governing credit assistance (guarantees) for derivatives transactions. . .