The concept of the “Early Termination Date” was first introduced into the 2011 GMRA. Following the occurrence of an Event of Default, the non-Defaulting Party designates an “Early Termination Date” within its “Default Notice” (Automatic Early Termination can also apply). In essence, this has been designed to ensure that the close-out mechanics of the 2011 GMRA are aligned with that of the ISDA Master Agreement.
On the “Early Termination Date”, the “Repurchase Date” for each Transaction is deemed to have occurred and the obligations to repay Cash Margin and to return Equivalent Margin Securities become due. “Default Market Value” (used for the purposes of a close-out) is also calculated as at the “Early Termination Date”.Contact Us