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Triangular Setoff Sample Clause 2

Book Publication Date: Feb 2019
Description: Setoff rights are included in master agreements for swap transactions as a way to reduce the credit exposure of the parties and the financial sytem as a whole. Bilateral setoff rights allow the two parties to offset debts owed to each other and create one net payment in the event a transaction is terminated. Triangular setoff is similar to bilateral setoff but includes debts of affiliates in the netting calculation.
Type: Contract Clauses
PLI Item #: 59705
Practice Area: Banking and finance, Bankruptcy and restructuring, Credit risk, Derivatives, Financial products, Financial risk, Litigation, Risk management, Securities and other financial products, Securities litigation

Keywords: "derivatives transaction"; "swap transaction"; "early termination"; "event of default"; "settlement amount"; "termination currency equivalent"; "unpaid amounts"; "force majeure"; illegality; "early termination date"; "master agreements"; "valuation statement"; "bilateral setoff"; offset; "close-out netting"; "triangular setoff"; affiliates

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