ISDA Master Agreement Notice

The ISDA Master Agreement Notice is a document that serves as a formal communication between two parties involved in a financial agreement. This document is important as it provides a statement of calculation of the early termination amount payable by one party to the other party. The document begins with the account job company's information, including their address and contact details. It is addressed to the party 1 contact and is dated with the current date.

 

The detailed introduction of the entire document explains that it is a notice related to the ISDA Master Agreement, which is a legal agreement between the account job company and the counterparty. The agreement's terms and definitions are applicable to this notice. The purpose of this notice is to demand payment of the early termination amount from the counterparty.

 

The document consists of several sections, each serving a specific purpose. The first section is the statement of calculation of the early termination amount. It provides details of the amount payable by the company to the counterparty. The attached schedule contains the calculations made by the bank to determine the early termination amount. These calculations must be obtained and made as of the early termination date.

 

The second section explains the due date and the payment terms. The early termination amount is due on the due date, which is the effective date of this statement. According to section 6(d)(ii) of the agreement, interest will accrue on the amount due from the early termination date to the date of payment. The interest is payable at the applicable close-out rate or the default rate, based on daily compounding and the actual number of days elapsed.

 

The third section is a demand for payment. The company demands payment of the early termination amount plus accrued interest from the counterparty. The counterparty is instructed to promptly remit the payment to the company's specified account.

 

The fourth section mentions the company's right to claim under the indemnity provision of section 11 of the agreement. The company reserves the right to claim reasonable out-of-pocket expenses, including legal fees, incurred due to the enforcement and protection of their rights under the agreement or any credit support document.

 

The final section states that this notice is governed and construed in accordance with the laws of the agreement. It clarifies that this notice does not waive any rights the company may have under the agreement and reserves all rights and remedies at law, equity, or under the agreement or elsewhere.

 

In summary, the ISDA Master Agreement Notice is a detailed document that provides a statement of calculation of the early termination amount and demands payment from the counterparty. It follows the terms and definitions of the ISDA Master Agreement and includes sections for calculation details, payment terms, demand for payment, indemnity rights, and governing laws.

How to use this document?

1. Enter the account job company's information, including their address and contact details.

2. Address the notice to the party 1 contact and date it with the current date.

3. Provide a statement of calculation of the early termination amount payable by the company to the counterparty.

4. Attach a schedule containing the calculations made by the bank to determine the early termination amount.

5. Specify the due date, which is the effective date of the statement, and explain the payment terms.

6. Clarify that interest will accrue on the amount due from the early termination date to the date of payment, based on the applicable close-out rate or default rate.

7. Demand payment of the early termination amount plus accrued interest from the counterparty.

8. Instruct the counterparty to promptly remit the payment to the company's specified account.

9. Mention the company's right to claim under the indemnity provision of section 11 of the agreement for reasonable out-of-pocket expenses, including legal fees.

10. Clarify that the notice is governed and construed in accordance with the laws of the agreement.

11. State that the notice does not waive any rights the company may have under the agreement and reserves all rights and remedies at law, equity, or under the agreement or elsewhere.