Credit Swap Agreement Template for Austria

The Credit Swap Agreement serves as a critical risk management tool in Austrian financial markets, allowing institutions to manage and transfer credit risk exposure. This document type is primarily used when parties wish to establish a framework for credit default swap transactions under Austrian jurisdiction. The agreement must comply with both Austrian financial regulations (including the BWG and FMABG) and relevant EU directives, particularly concerning derivatives trading and financial market infrastructure. It typically includes comprehensive terms covering credit events, settlement mechanisms, payment obligations, and regulatory compliance requirements. The document is essential for financial institutions operating in Austria who seek to manage credit risk exposure through derivative instruments while ensuring compliance with local and EU regulatory frameworks.

1. Parties: Identification of the contracting parties and their legal status

2. Background: Context of the agreement and general purpose of the credit swap arrangement

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and interpretation rules

4. Transaction Terms: Core economic terms including credit events, reference obligations, and payment obligations

5. Payment Provisions: Details of payment mechanics, calculation periods, and payment dates

6. Credit Events: Comprehensive list of triggering events and their specific conditions

7. Settlement Terms: Procedures for settlement following a credit event

8. Representations and Warranties: Standard and transaction-specific representations by both parties

9. Obligations and Undertakings: Ongoing obligations of the parties during the agreement term

10. Events of Default: Circumstances constituting default and consequences

11. Termination Events: Circumstances allowing early termination and procedures

12. Transfer and Assignment: Rules regarding transfer of rights and obligations

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Specification of Austrian law and jurisdiction provisions

15. Miscellaneous: Standard boilerplate provisions including severability and amendments