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Credit Default Swap Agreement
"I need a Credit Default Swap Agreement under South African law for a major commercial bank acting as protection seller, with physical settlement options and specific provisions for sovereign debt restructuring events, targeting implementation by March 2025."
1. Parties: Identification of the protection buyer and protection seller, including their registration details and regulatory status
2. Background: Context of the agreement and brief description of the transaction structure
3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement, including specific credit events and financial terms
4. Transaction Terms: Core economic terms including reference entity, obligations, credit events, and settlement terms
5. Premium Payments: Details of premium calculations, payment dates, and payment mechanics
6. Credit Events: Detailed description of credit events that trigger settlement, notification requirements, and verification procedures
7. Settlement: Settlement mechanics, including choice between physical and cash settlement, valuation methods, and timing
8. Representations and Warranties: Standard and transaction-specific representations and warranties from both parties
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: Provisions for early termination, including triggers and consequences
12. Calculations and Determinations: Roles and responsibilities for calculations, including dispute resolution mechanisms
13. Notices: Communication procedures and contact details
14. Governing Law and Jurisdiction: South African law as governing law and jurisdiction provisions
15. General Provisions: Standard boilerplate clauses including amendments, assignments, and severability
1. Credit Support Arrangements: Collateral requirements and credit support mechanisms, used when parties require additional security
2. Multiple Reference Entities: Additional provisions for CDS agreements covering multiple reference entities
3. Third Party Rights: Provisions regarding rights of third parties, particularly relevant if there are guarantors or other involved parties
4. Special Settlement Provisions: Custom settlement arrangements deviating from standard physical or cash settlement
5. Tax Provisions: Detailed tax provisions when parties are in different jurisdictions or have specific tax requirements
6. Market Disruption Events: Provisions dealing with market disruption events affecting settlement or valuation
7. Additional Termination Events: Transaction-specific termination triggers beyond standard events of default
1. Schedule 1: Transaction Details: Detailed economic terms including reference entity information, credit events, obligations, and settlement terms
2. Schedule 2: Notice Details: Comprehensive contact information and notice requirements for all parties
3. Schedule 3: Credit Support Terms: Detailed collateral requirements and credit support calculations if applicable
4. Schedule 4: Settlement Matrix: Standard settlement terms and modifications based on ISDA Credit Derivatives Physical Settlement Matrix
5. Appendix A: Form of Credit Event Notice: Template for credit event notifications
6. Appendix B: Form of Notice of Physical Settlement: Template for physical settlement notifications
7. Appendix C: Calculation Methods: Detailed calculation methodologies for premiums, settlement amounts, and other payments
8. Appendix D: Reference Entity Details: Comprehensive information about the reference entity and reference obligations
Authors
Affiliate
Bankruptcy
Business Day
Calculation Agent
Calculation Amount
Calculation Period
Cash Settlement
Cash Settlement Amount
Confirmation
Credit Event
Credit Event Notice
Credit Event Redemption Amount
Credit Protection Period
Default Interest
Defaulting Party
Deliver
Deliverable Obligation
Early Termination Date
Effective Date
Event of Default
Exercise Period
Failure to Pay
Fixed Amount
Fixed Rate
Fixed Rate Payer
Floating Rate
Force Majeure Event
Governmental Authority
Grace Period
ISDA Master Agreement
Loss
Market Value
Merger Event
Non-defaulting Party
Notice Delivery Period
Notification Period
Obligation
Payment Date
Physical Settlement
Premium
Protection Buyer
Protection Seller
Reference Entity
Reference Obligation
Restructuring
Scheduled Termination Date
Settlement Currency
Settlement Date
Settlement Method
Specified Currency
Succession Event
Successor
Termination Currency
Transaction
Valuation Date
Voting Shares
ZAR
South African Business Day
SARB
FSR Act
Financial Markets Act
FSCA
Prudential Authority
Credit Derivatives Determinations Committee
Relevant Jurisdiction
Reference Price
Quotation
Quotation Method
Rating Downgrade
Regulatory Change Event
Regulatory Requirements
Repudiation/Moratorium
Securities Exchange
Recitals
Definitions
Transaction Terms
Credit Events
Payment Obligations
Premium Payments
Settlement Provisions
Physical Settlement
Cash Settlement
Credit Event Notifications
Calculation and Valuation
Representations and Warranties
Covenants
Events of Default
Early Termination
Close-out
Regulatory Compliance
Collateral Requirements
Credit Support
Market Disruption
Force Majeure
Dispute Resolution
Governing Law
Jurisdiction
Notices
Assignment and Transfer
Amendments
Confidentiality
Data Protection
Anti-Money Laundering
Tax Provisions
Costs and Expenses
Indemnification
Set-off Rights
Severability
Entire Agreement
Counterparts
Third Party Rights
Time of Essence
Record Keeping
Regulatory Reporting
Exchange Control
Banking
Financial Services
Insurance
Investment Management
Securities Trading
Risk Management
Corporate Finance
Asset Management
Hedge Funds
Pension Funds
Legal
Risk Management
Trading
Compliance
Treasury
Operations
Finance
Documentation
Credit Analysis
Regulatory Affairs
Portfolio Management
Settlements
Product Development
Chief Risk Officer
Trading Director
Derivatives Trader
Financial Director
Legal Counsel
Compliance Officer
Portfolio Manager
Credit Risk Manager
Treasury Manager
Investment Manager
Structured Products Manager
Operations Director
Chief Financial Officer
Risk Analyst
Documentation Specialist
Regulatory Affairs Manager
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