Derivatives · glossary

Affected Party

The party a Termination Event happens to. It is not a party at fault. Under Part 1(g) Atlas is the only Affected Party, so the bank alone may end the swap and works out the close-out sum. Definition: Affected Party · Chapter 11

Explained in Chapter 11, The Refinancing, Termination Events and the Orphaned Swap, of Derivatives.

How it comes up, in Chapter 8
Clause 5.2 lists a second family, the Termination Events. They include illegality, tax events, a credit event upon merger and any Additional Termination Event the Schedule adds. Part 1(g) adds one, and Chapter 11 follows it. Nobody is at fault, so the clause speaks of an Affected Party, not a defaulting one.
Read Chapter 8, The First Winter: Events of Default, Cross Default and the Two Hats →

Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.

As defined in the training master agreement
in relation to a Termination Event, the party to which the event has occurred, determined under clause 5.3 — for an illegality or a tax event, the party or parties the event affects; for the Additional Termination Event in Part 1(g) of the Schedule, Party B alone;
Read the definition in the document →

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Where this term lives

This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Derivatives → · All terms A–Z →