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Credit Default Swap Agreement
"I need a Credit Default Swap Agreement under U.S. law between an investment bank (as protection seller) and a pension fund (as protection buyer), with mandatory clearing provisions and special entity protections, to be effective from March 1, 2025."
1. Parties: Identification of the contracting parties, including registration status and regulatory classifications
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Key terms used in the agreement, incorporating ISDA definitions by reference
4. Transaction Terms: Core economic terms including reference entity, obligations, credit events, and settlement methods
5. Payment Obligations: Premium payments, calculation methods, and payment dates
6. Credit Events: Detailed specifications of triggering events and determination process
7. Settlement: Physical or cash settlement procedures, valuation methods, and delivery requirements
8. Representations and Warranties: Standard and regulatory-required representations from both parties
9. Covenants: Ongoing obligations including reporting, clearing, and regulatory compliance
10. Events of Default: Circumstances constituting default and corresponding remedies
11. Term and Termination: Duration, early termination rights, and close-out procedures
12. Governing Law and Jurisdiction: Choice of law and dispute resolution provisions
1. Clearing Requirements: Required if the CDS is subject to mandatory clearing under Dodd-Frank
2. Special Entity Provisions: Required when dealing with government entities or pension plans
3. Additional Tax Provisions: Required for cross-border transactions or special tax situations
4. Break Clauses: Optional provisions allowing periodic termination rights
5. Credit Support Requirements: Optional collateral and margin provisions if not covered by separate CSA
6. Third-Party Rights: Required if certain terms are enforceable by non-parties
7. Agent Provisions: Required when either party acts through an agent
1. Transaction Confirmation: Detailed economic terms of the specific CDS transaction
2. Reference Entity Description: Detailed information about the reference entity and reference obligations
3. Credit Support Annex: Collateral and margin requirements if not covered by existing CSA
4. Calculation Agent Provisions: Detailed procedures for calculations and determinations
5. Standard Settlement Terms: ISDA standard terms for settlement procedures
6. Form of Notices: Templates for credit event notices, physical settlement notices, etc.
7. Eligible Transferee Provisions: Requirements for permitted assignments and transfers
8. Regulatory Reporting Requirements: Specific reporting obligations and procedures
Authors
Financial Services
Banking
Insurance
Investment Management
Securities and Capital Markets
Risk Management
Treasury Services
Asset Management
Hedge Funds
Pension Fund Management
Corporate Finance
Derivatives Trading
Legal
Compliance
Risk Management
Trading
Operations
Treasury
Credit Analysis
Documentation
Regulatory Reporting
Finance
Investment
Structured Products
Portfolio Management
Credit Derivatives Trader
Risk Manager
Compliance Officer
Legal Counsel
Derivatives Documentation Specialist
Credit Risk Analyst
Portfolio Manager
Trading Operations Manager
Chief Investment Officer
Treasury Manager
Regulatory Reporting Officer
Structured Products Specialist
Credit Portfolio Manager
Financial Controller
Chief Financial Officer
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