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Master Netting Agreement
"I need a Master Netting Agreement under Pakistani law for use between our international bank and local Pakistani financial institutions, to be implemented by March 2025, covering forex transactions, derivatives, and securities lending, with specific provisions for cross-border settlements and State Bank reporting requirements."
1. Parties: Identification of the contracting parties and their legal status
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Comprehensive definitions of terms used throughout the agreement
4. Scope of Agreement: Description of transactions covered by the netting arrangement
5. Netting Provisions: Core mechanisms for payment and delivery netting
6. Close-out Netting: Procedures and calculations for close-out netting upon default or termination
7. Events of Default: Specific circumstances that trigger default and close-out netting rights
8. Early Termination: Procedures and consequences of early termination
9. Set-off Rights: Rights of parties to set off obligations against each other
10. Representations and Warranties: Standard and specific representations regarding capacity and authority
11. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and jurisdiction details
12. Notices: Communication procedures between parties
13. Miscellaneous: Standard boilerplate provisions including amendments, waivers, and severability
1. Multi-branch Provisions: Include when parties operate through multiple branches or offices
2. Cross-border Provisions: Include when transactions involve international elements
3. Central Bank Reporting: Include when transactions require State Bank of Pakistan reporting
4. Islamic Banking Provisions: Include when one or more parties operate under Islamic banking principles
5. Currency Provisions: Include when transactions involve multiple currencies
6. Tax Provisions: Include detailed tax provisions when parties are subject to different tax regimes
7. Regulatory Compliance: Include specific regulatory compliance provisions for regulated entities
1. Schedule 1 - Covered Transactions: List and details of transaction types covered by the agreement
2. Schedule 2 - Calculation Methods: Detailed methodology for calculating netted amounts
3. Schedule 3 - Forms of Notice: Standard forms for various notices under the agreement
4. Schedule 4 - Authorized Representatives: List of authorized signatories and representatives
5. Schedule 5 - Branch Offices: List of participating branches if multi-branch agreement
6. Appendix A - Standard Settlement Instructions: Payment and settlement instructions for each party
7. Appendix B - Documentation Requirements: Required documentation for various processes under the agreement
Authors
Applicable Law
Base Currency
Business Day
Calculation Agent
Calculation Amount
Calculation Date
Close-out Amount
Close-out Netting
Covered Transactions
Default Interest
Default Rate
Defaulting Party
Early Termination
Early Termination Date
Early Termination Event
Eligible Contract
Event of Default
Force Majeure Event
Governing Law
Islamic Banking Provisions
Local Business Day
Market Quotation
Master Agreement
Netting
Net Settlement Amount
Non-defaulting Party
Notice of Default
Payment Date
Payment Netting
Potential Event of Default
Reference Market-makers
Relevant Jurisdiction
Set-off Rights
Settlement Amount
Settlement Date
Specified Branches
Specified Indebtedness
State Bank Requirements
Termination Amount
Termination Currency
Termination Event
Transaction
Transfer
Unpaid Amount
Valuation Date
Waiting Period
Close-out Netting
Payment Netting
Events of Default
Early Termination
Set-off
Representations and Warranties
Covenants
Governing Law
Jurisdiction
Dispute Resolution
Calculation and Valuation
Payment Obligations
Default Interest
Force Majeure
Notices
Assignment
Amendments
Severability
Entire Agreement
Counterparts
Confidentiality
Term and Termination
Islamic Banking Compliance
Regulatory Compliance
Currency Provisions
Tax Provisions
Authority and Capacity
Documentation Requirements
Settlement Instructions
Cross-Border Provisions
Branch Office Provisions
Record Keeping
Audit Rights
Indemnification
Banking
Financial Services
Insurance
Investment Management
Securities Trading
Corporate Treasury
Islamic Finance
Asset Management
Capital Markets
Financial Technology
Legal
Treasury
Risk Management
Compliance
Finance
Operations
Trading
Credit Risk
Regulatory Affairs
Corporate Finance
Treasury Manager
Chief Financial Officer
Risk Manager
Legal Counsel
Compliance Officer
Financial Controller
Trading Manager
Operations Manager
Credit Risk Officer
Corporate Treasurer
Banking Relationship Manager
Legal Director
Head of Treasury
Chief Risk Officer
Regulatory Compliance Manager
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