Closeout netting definition

Closeout netting means any procedure whereby the outstanding performance of contracts between the parties is terminated, and a net payment becomes due from one party to the other calculated by reference to the aggregate values (typically, using market values) thereof. “Setoff” means any procedure whereby the amounts due from one party to the other party are discharged through their aggregation against amounts due from that other party to the first party. Obviously closeout netting and setoff generally are closely related for the purposes of the enforceability issues dealt with in this questionnaire.
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Examples of Closeout netting in a sentence

  • Close-out netting is done by (i) aggregating the net loss or net profit of each individual transaction existing on the date of termination, (ii) adding or subtracting any amount the Customer owes to the Bank under this Agreement and (iii) adding or subtracting all reasonable out-of-pocket expenses the Bank has paid to any third parties, including legal fees, execution fees and any tax incurred by the Bank and all expenses incurred by the Bank due to the enforcement and protection of its rights.

  • Close-out netting thus operates by way of forming an agreement that typically allows the solvent party to terminate all contracts between parties, calculate the losses and gains on each contract, and then set them off so that a single balance is owing.98 This is the ‘net’ amount.99 Collateral transactions are therefore usually dealt with en-masse from a capital requirement and risk management perspective.

  • Close-out netting is therefore viewed by market participants as an im- portant risk mitigation tool that reduces the exposures to a counterparty and, as a consequence, counterparty risk.

  • Close-out netting can therefore “reduce the gross exposures incurred 101 ▇▇▇▇▇▇▇▇▇▇▇ and ▇▇▇▇▇▇ ▇▇▇▇ (n 91) 331 at 337.

  • Close-out netting is vital to the ISDA Master Agreement; so vital that ISDA has commissioned legal opinions from 39 countries to find out if they would recognise close-out netting if a Non-defaulting Party exercised its rights in a default or bankruptcy situation involving one of their nationals.

  • Close-out netting has been agreed between the Borrower and the Lenders.

Related to Closeout netting

  • Inter-connection Point means interface point of renewable energy generating facility with the transmission system or distribution system, as the case may be:

  • ATM means Automated Teller Machine.

  • Interconnection arrangements means arrangements governing the physical connection of two or more networks to allow the use of another's network to hand off traffic where it is ultimately delivered (e.g., connection of a customer of telephone provider A to a customer of telephone company B) or sharing data and other information resources.

  • processing aid means any substance not consumed as a food ingredient by itself, intentionally used in the processing of raw materials, foods or their ingredients, to fulfil a certain technological purpose during treatment or processing and which may result in the unintentional but technically unavoidable presence of residues of the substance or its derivatives in the final product, provided that these residues do not present any health risk and do not have any technological effect on the finished product;

  • Water Connection means the point where a water service line attaches to a water main, thereby allowing water to flow from the City’s water system to an individual customer.