Derivatives · glossary
How much other borrowing must be in default before the cross default fires: €5,000,000 for Atlas, raised from the €2,000,000 the bank first asked for. It is a different number from the collateral Threshold. Definition: Threshold Amount · Chapter 4 · Chapter 8
Explained in Chapter 4, One Agreement: the Master, the Schedule and the People Who Negotiate It, of Derivatives.
Two defined terms do the work, and the Schedule fills in both. Specified Indebtedness is the borrowing that counts. The Threshold Amount is how much of it must be in default before the limb fires.Read Chapter 8, The First Winter: Events of Default, Cross Default and the Two Hats →
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in relation to a party, the amount specified for it in Part 1(c) of the Schedule, above which aggregate Specified Indebtedness engages clause 5.1(f) — for Party B €5,000,000, and for Party A 2% of its shareholders' equity as shown in its latest audited accounts;Read the definition in the document →
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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 →