ISDA® Publishes Optional Amendment to Controversial Section 2(a)(iii) of ISDA Master Agreement | Practical Law
ISDA has published an amendment to Section 2(a)(iii) of the ISDA Master Agreement, designed to address the open-ended payment-withholding option during the continuation of a counterparty default under that section. This issue was heavily litigated in both the US and the UK in the wake of the financial crisis. The amendment gives parties the opportunity to integrate a time limit on this provision into their ISDA Master Agreements.