Examples of Default under Specified Transaction in a sentence
Each party to the Master Agreement designates its Specified Entities with respect to three Events of Default (i.e., Default Under Specified Transaction, Cross Default, and Bankruptcy) and one Termination Event (i.e., Credit Event Upon Merger) in Part 1(a) of the Schedule (collectively, the “Part 1(a) Designated Events”).
Section 5(a)(v) (Default Under Specified Transaction) will not apply to Party A or Party B.
Each of Party A and Party B agrees that, in respect of a Payment Failure, for the purposes of the Default Under Specified Transaction Event of Default, as defined in and pursuant to any applicable Derivatives Agreement, this Agreement will be deemed to be a Specified Transaction and the scheduled payment date of the relevant payment will be deemed to be the last payment date of such Specified Transaction.
Therefore, in order to avoid Events of Default and Termination Events under Section 5(a)(v) - Default Under Specified Transaction, Section 5(a)(vi) - Cross-Default, or under Section 5(a)(vii) - Bankruptcy, or under Section 5(b)(iv) - Credit Event Upon Merger of the ISDA Master Agreement, it is advisable to use the following wording in Part 1.
If parties do this then it is advisable to amend Section 5(a)(v) (Default Under Specified Transaction) in-line with the 2002 Agreement.