Credit Swap Agreement Template for Denmark

This Credit Swap Agreement template is designed for use in the Danish market when parties wish to enter into credit default swap transactions under Danish law. The document serves as a master agreement that establishes the legal framework for trading credit derivatives while ensuring compliance with Danish financial regulations and relevant EU directives (including EMIR and MiFID II). It is particularly relevant for financial institutions, banks, and corporate entities seeking to manage credit risk exposure through derivative instruments. The agreement incorporates specific Danish legal requirements regarding financial collateral, netting arrangements, and insolvency provisions, while also addressing regulatory reporting obligations and settlement procedures. This template should be used when establishing new trading relationships for credit derivatives in Denmark or when existing arrangements need to be updated to reflect current regulatory requirements.

1. Parties: Identification of the contracting parties and their legal details

2. Background: Context of the agreement and general purpose of the credit swap arrangement

3. Definitions: Comprehensive definitions of technical terms, financial concepts, and agreement-specific terminology

4. Transaction Mechanics: Core provisions governing how credit swap transactions are initiated, confirmed, and settled

5. Credit Events: Definition and scope of credit events that trigger the swap, notification procedures, and verification processes

6. Settlement Terms: Procedures for settlement following a credit event, including calculation methods and payment obligations

7. Representations and Warranties: Standard and swap-specific representations and warranties from both parties

8. Covenants: Ongoing obligations of the parties throughout the agreement term

9. Default and Termination: Events of default, early termination provisions, and consequences

10. Calculation Agent: Appointment, role, and responsibilities of the calculation agent

11. Payment Provisions: Payment mechanics, timing, and currency provisions

12. Tax Provisions: Treatment of taxes, including gross-up obligations and tax events

13. Governing Law and Jurisdiction: Danish law as governing law and jurisdiction provisions