Additional Termination Event (ATE)

Under a swap ( www.practicallaw.com/0-382-3858) transaction documented using an ISDA Master Agreement ( www.practicallaw.com/1-386-5188) (ISDA Master): A termination event ( www.practicallaw.com/1-386-4141) negotiated by the parties to the ISDA master which is not specified in the ISDA Master (a placeholder ATE termination event is designated in Section 5(b)(v) of the 1992 ISDA Master Agreement and in section 5(b)(vi) of the 2002 ISDA Master Agreement). ATEs are typically specified in the ISDA Schedule ( www.practicallaw.com/7-386-8122) or in a transaction confirmation ( www.practicallaw.com/2-386-8134) . Some common ATEs include a credit rating downgrade of a party, or, in the case of a fund, a decline in the fund's net asset value ( www.practicallaw.com/5-386-4144) (NAV) below a certain threshold level. The range of ATEs that the parties may agree on is nearly unlimited. For details, see Practice Note, .The ISDA Master Agreement and Schedule: Part 1(g) of the 2002 Schedule/Part 1(h) of the 1992 Schedule: Additional Termination Event ( www.practicallaw.com/3-587-5725) .

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