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Credit Swap Agreement
"I need a Credit Swap Agreement for a transaction between our Indonesian bank and a major international financial institution, with a notional amount of USD 50 million and settlement in both USD and IDR, targeting completion by March 2025."
1. Parties: Identification of the swap counterparties, including registration details and regulatory status
2. Background: Context of the agreement and brief description of the credit swap transaction
3. Definitions: Definitions of technical terms, financial concepts, and other key terms used throughout the agreement
4. Transaction Terms: Core economic terms of the credit swap, including notional amount, reference entity, and credit events
5. Payment Obligations: Details of premium payments, settlement amounts, and payment mechanics
6. Credit Events: Specification of triggering events, notification procedures, and verification processes
7. Settlement Terms: Procedures for settlement following a credit event, including valuation and payment mechanisms
8. Representations and Warranties: Standard and transaction-specific representations by both parties
9. Covenants: Ongoing obligations of the parties during the term of the agreement
10. Events of Default: Circumstances constituting default and associated remedies
11. Early Termination: Provisions for early termination and associated calculations
12. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes
13. Notices: Communication procedures and contact details for notices between parties
14. Miscellaneous: Standard boilerplate provisions including amendments, assignments, and severability
1. Credit Support Arrangements: Include when collateral or other credit support is required for the transaction
2. Third Party Rights: Include when rights are to be granted to third parties, such as credit support providers
3. Tax Provisions: Include detailed tax provisions when cross-border elements exist or specific tax implications need addressing
4. Market Disruption: Include when specific market disruption events need to be addressed
5. Additional Termination Events: Include when specific circumstances beyond standard defaults should trigger termination
6. Regulatory Compliance: Include specific regulatory compliance provisions when dealing with regulated entities
7. Data Protection: Include when personal data processing is involved in the transaction
1. Schedule 1 - Transaction Details: Detailed economic terms, including reference entity information, credit events, and payment terms
2. Schedule 2 - Form of Confirmation: Template for documenting individual credit swap transactions under the agreement
3. Schedule 3 - Notice Details: Detailed contact information and notice requirements for both parties
4. Schedule 4 - Credit Support Terms: Specific terms and calculations for any required credit support or collateral
5. Appendix A - Standard Terms: Standard definitions and terms incorporated from market standard documentation
6. Appendix B - Calculation Methods: Detailed procedures for calculations, valuations, and determinations
7. Appendix C - Settlement Procedures: Step-by-step procedures for settlement following credit events
Authors
Additional Termination Event
Affiliate
Bankruptcy
Business Day
Calculation Agent
Calculation Amount
Credit Event
Credit Event Notice
Credit Protection Buyer
Credit Protection Seller
Credit Support Document
Credit Support Provider
Default Rate
Defaulting Party
Delivery Date
Early Termination Amount
Early Termination Date
Event of Default
Exercise Date
Failure to Pay
Fixed Amount
Fixed Rate
Fixed Rate Payer
Floating Rate
Floating Rate Payer
Governmental Authority
Grace Period
Grace Period Business Day
Indonesian Business Day
Initial Payment Date
Interest Period
ISDA Master Agreement
Material Obligation
Notice Delivery Period
Notice of Physical Settlement
Obligation
OJK
Payment Date
Physical Settlement Amount
Potential Credit Event
Premium
Reference Entity
Reference Obligation
Relevant Jurisdiction
Required Information
Scheduled Termination Date
Settlement Currency
Settlement Date
Settlement Method
Specified Currency
Successor
Termination Currency
Transaction
Valuation Date
Voting Shares
Transaction Terms
Premium Payments
Credit Events
Settlement
Physical Settlement
Cash Settlement
Representations and Warranties
Covenants
Events of Default
Early Termination
Close-out
Payment Netting
Transfer
Tax
Governing Law
Dispute Resolution
Notices
Confidentiality
Force Majeure
Regulatory Compliance
Documentation
Calculations
Credit Support
Successors
Reference Obligations
Market Disruption
Amendments
Assignment
Severability
Entire Agreement
Third Party Rights
Counterparts
Data Protection
Anti-Money Laundering
Currency Provisions
Payment Mechanics
Set-off
Indemnification
Records and Reporting
Banking
Financial Services
Insurance
Investment Management
Capital Markets
Corporate Finance
Risk Management
Trading and Securities
Financial Technology
Asset Management
Legal
Risk Management
Trading
Compliance
Treasury
Credit Analysis
Documentation
Finance
Structured Products
Operations
Chief Risk Officer
Head of Trading
Derivatives Trader
Legal Counsel
Compliance Officer
Credit Risk Manager
Financial Controller
Treasury Manager
Structured Products Manager
Investment Officer
Senior Credit Analyst
Documentation Specialist
Risk Management Director
Head of Legal
Chief Financial Officer
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