Derivatives · glossary
The Event of Default when a party fails to make a collateral transfer and does not put it right within two Local Business Days after notice. It makes a collateral call a legal deadline, not an invoice. Clause 5.1(c) · Chapter 10
Explained in Chapter 10, Collateral: the Annex and the Call, of Derivatives.
Paragraph 10 is where the comfort stops. If a party fails to transfer and does not put it right within two business days after notice, that is a credit support default, which is an Event of Default. An ordinary breach of the agreement gets thirty days, and only a missed payment gets less. So a missed transfer can end every trade, just as a missed payment can.Read Chapter 10, Collateral: the Annex and the Call →
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