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Credit Swap Agreement
"I need a Credit Swap Agreement under Hong Kong law for a major investment bank acting as protection seller, with physical settlement options and specific provisions for multiple reference entities in the technology sector."
1. Parties: Identification of the contracting parties, including full legal names and addresses
2. Background: Context of the agreement and relationship between the parties
3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and interpretation rules
4. Credit Events: Specification of triggering events that activate the swap mechanism
5. Settlement Terms: Procedures and mechanisms for settlement following a credit event
6. Payment Obligations: Details of premium payments, payment dates, and calculation methods
7. Representations and Warranties: Standard and specific representations made by each party
8. Events of Default: Circumstances constituting default and consequential rights
9. Termination: Provisions for early termination and close-out procedures
10. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
11. General Provisions: Standard boilerplate clauses including notices, amendments, and assignments
1. Credit Support Arrangements: Required when parties agree to collateral or other credit support arrangements
2. Additional Termination Events: Used when parties agree to specific circumstances beyond standard events of default
3. Tax Provisions: Detailed tax clauses needed when cross-border elements exist
4. Multiple Reference Entities: Required when the swap covers multiple reference entities
5. Succession Events: Needed when dealing with potential changes in reference entities
6. Break Clauses: Optional provisions allowing periodic termination rights
7. Regulatory Compliance: Additional provisions required for regulated entities or specific regulatory regimes
1. Schedule 1 - Transaction Terms: Specific economic terms of the credit swap including reference entity, obligations, and pricing
2. Schedule 2 - Calculation Methods: Detailed methodology for calculating payments and settlement amounts
3. Schedule 3 - Notice Details: Contact information and procedures for notices between parties
4. Schedule 4 - Credit Support Terms: Details of any collateral or credit support arrangements
5. Appendix A - Form of Confirmation: Template for transaction confirmations
6. Appendix B - Settlement Documentation: Forms and procedures for settlement following credit events
7. Appendix C - Eligible Obligations: List of obligations covered under the swap agreement
Authors
Banking and Financial Services
Investment Management
Insurance
Asset Management
Corporate Finance
Capital Markets
Risk Management
Financial Technology
Investment Banking
Hedge Funds
Legal
Risk Management
Trading
Compliance
Operations
Treasury
Credit Analysis
Documentation
Finance
Regulatory Reporting
Portfolio Management
Structured Products
Middle Office
Chief Risk Officer
Head of Trading
Derivatives Trader
Legal Counsel
Compliance Officer
Credit Risk Manager
Portfolio Manager
Structured Products Specialist
Treasury Manager
Financial Controller
Documentation Specialist
Credit Analyst
Risk Analyst
Trading Operations Manager
Regulatory Reporting Officer
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