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Credit Swap Agreement
"I need a Credit Swap Agreement for my bank to purchase credit protection from ABC Insurance Ltd. for a portfolio of corporate bonds worth INR 500 million, with quarterly premium payments and a term ending March 2025."
1. Parties: Identification of the contracting parties including their registered addresses and registration details
2. Background: Context of the agreement and brief description of the parties' intentions
3. Definitions: Detailed definitions of technical terms, financial concepts, and other key terms used throughout the agreement
4. Transaction Terms: Core economic terms including notional amount, reference entity, credit events, and payment obligations
5. Payment Mechanics: Details of payment calculations, timing, and settlement procedures
6. Credit Events: Comprehensive definition of triggering events and their determination process
7. Settlement Terms: Procedures for settlement following a credit event, including valuation and payment mechanisms
8. Representations and Warranties: Standard and transaction-specific representations made by each party
9. Covenants: Ongoing obligations of the parties during the term of the agreement
10. Events of Default: Circumstances constituting default and corresponding remedies
11. Early Termination: Conditions and procedures for early termination of the agreement
12. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes
13. Notices: Communication procedures and contact details for formal notices
14. Miscellaneous: Standard boilerplate provisions including amendments, assignments, and severability
1. Credit Support Arrangements: Details of collateral arrangements if credit support is required
2. Third Party Rights: Provisions regarding rights of third parties, particularly relevant if reference entities have specific rights
3. Tax Provisions: Detailed tax considerations and allocations if complex tax implications exist
4. Market Disruption Events: Provisions dealing with market disruption events if relevant to the specific swap structure
5. Additional Termination Events: Specific circumstances triggering termination beyond standard events of default
6. Regulatory Compliance: Additional compliance requirements if parties are subject to specific regulatory regimes
7. Multiple Reference Entities: Additional provisions for deals involving multiple reference entities
1. Schedule 1 - Transaction Details: Detailed economic terms of the swap including dates, amounts, and calculation methods
2. Schedule 2 - Reference Entity Information: Detailed information about the reference entity and relevant obligations
3. Schedule 3 - Credit Support Terms: Specific terms and conditions of any credit support arrangements
4. Schedule 4 - Notice Details: Detailed contact information and notice procedures for all parties
5. Appendix A - Credit Derivatives Definitions: Incorporation of standard credit derivatives definitions with any modifications
6. Appendix B - Form of Credit Event Notice: Template for credit event notices and related communications
7. Appendix C - Calculation Agent Provisions: Detailed provisions regarding the role and responsibilities of the calculation agent
8. Appendix D - RBI Compliance Checklist: Checklist ensuring compliance with RBI guidelines on credit default swaps
Authors
Additional Termination Event
Affiliate
Agreement Date
Approved Broker
Bankruptcy
Business Day
Calculation Agent
Calculation Amount
Calculation Period
Credit Event
Credit Event Notice
Credit Protection
Default Interest
Defaulting Party
Delivery Date
Effective Date
Eligible Transferee
Event of Default
Exercise Notice
Expiry Date
Failure to Pay
Fixed Amount
Fixed Rate
Fixed Rate Payer
Floating Rate
Floating Rate Payer
Governing Law
Grace Period
Indian Business Day
Initial Payment
Interest Period
ISDA Master Agreement
Loss
Market Quotation
Material Adverse Effect
Notional Amount
Notice Delivery Period
Obligation
Payment Date
Premium
Protection Buyer
Protection Seller
Quote
Reference Entity
Reference Obligation
Relevant Jurisdiction
Representative Amount
Required Currency
Scheduled Termination Date
Settlement Currency
Settlement Date
Settlement Method
Specified Currency
Succession Event
Termination Currency
Termination Date
Transaction
Transfer Date
Valuation Date
Valuation Method
Credit Events
Payment Obligations
Settlement Terms
Early Termination
Default
Force Majeure
Representations and Warranties
Covenants
Transfer Restrictions
Regulatory Compliance
Confidentiality
Dispute Resolution
Governing Law and Jurisdiction
Notices
Calculation Agent
Credit Support
Reference Entity
Succession Events
Documentation
Assignment
Amendment
Severability
Entire Agreement
Counterparts
Tax
Expenses
Term and Termination
Indemnification
Market Disruption
Netting
Set-off Rights
Third Party Rights
Record Keeping
Reporting Requirements
Banking
Financial Services
Insurance
Investment Management
Corporate Finance
Risk Management
Securities Trading
Asset Management
Investment Banking
Corporate Banking
Legal
Risk Management
Treasury
Trading
Compliance
Financial Control
Operations
Credit Analysis
Documentation
Structured Products
Investment Management
Chief Risk Officer
Credit Risk Manager
Derivatives Trader
Legal Counsel
Compliance Officer
Financial Controller
Treasury Manager
Investment Manager
Portfolio Manager
Structured Products Specialist
Credit Analyst
Trading Operations Manager
Senior Banker
Risk Analyst
Documentation Specialist
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