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Broad Triangular Setoff Sample Clause

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.
Form Type: Contract Clauses
Practice Area: Banking, Bankruptcy & Restructuring, Corporate & Securities

Date: Jun 2014
PLI Item #: 59708
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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