section 5 (b) (ii) of the ISDA 2002 Model Form – Framework Contract (the “2002 Framework Contract”; each of the 1992 Framework Contracts and the 2002 Framework Agreement may be referred to therein as the “Framework Contract”) contains the following clause on the case of force majeure as a termination event (the “2002 Force Majeure Clause”): (ii) except in the circumstances mentioned in clause (i) above, If an event or circumstance, which otherwise constitutes an illegality or an event of force majeure or constitutes an event of delay or other event of dismissal, it is treated as an event of delay or other event of dismissal and does not constitute an illegality or an event of force majeure and does not create or lead to an event of force majeure. While the 1992 and 2002 versions of the ISDA Framework Contract are standardized, the provisions of the Schedule to the ISDA Master Agreements are still under negotiation, often resulting in lengthy customer onboarding processes and increased complexity. In addition, highly negotiated provisions can lead to problems of interpretation and difficulties in using technology to collect data on these agreements. The ISDA clause library contains many routine trading topics in the market, for example. B the non-payment and delivery clause (including a change to the administrative error model), amendments to the cross-default clause (to introduce a requirement for cross-acceleration or the development of administrative errors) and the development of options on the scope of the definitions “specified transactions” and “specified debt” to extend or limit. Due to changing market practices, the ISDA library should be updated. The transaction indicated is particularly relevant to the standard in the specified transaction event of the delay and to the clauses relating to the scope of the agreement, which are often included in Part 5 of the schedule. Since members and non-members can access the ISDA clause library via the ISDA website, market participants and their lawyers have access to a large number of design alternatives to achieve their business and legal objectives, and buy-side participants will finally have similar information to their counterparties in financial institutions. In addition, since the isda library contains only sector-validated clauses, it should improve the effectiveness of negotiations, as the parties focus more on substantive issues than on differences in wording. Each step of this analysis requires a careful assessment of the relevant facts and circumstances, as certain provisions (e.g.
B additional termination events relating merely to the occurrence or non-occurrence of a particular event or condition) may not fall within the protection of the 2002 force majeure provision. For those who object to a force majeure event, the claimant`s failure to carefully assess the 2002 force majeure provision may offer a large number of convincing defence options. (iii) Where an event or circumstance that would otherwise constitute or lead to an event of force majeure also constitutes an illegality, it shall be treated as unlawful, except as described in clause (ii) above, and not as a case of force majeure. Default Under Specified Transaction has been called the derivatives cross default clause. As part of its mission to maintain a standardized framework for the derivatives industry, ISDA has identified the timeline as a rich goal for further streamlining to enable the potential use of Legaltech solutions and has established a Legal Technology Working Group (LTWG). Among the various tasks entrusted to the LTWG were the development of a basic clause library for the schedule, available to the entire industry (called the ISDA Clause Library Project) and the development of legaltech solutions, in collaboration with the ISDA Smart Contracts/DLT Legal Working Group. . . .