The 1992 ISDA does not have a tracking provision contained in its standard conditions that parties can invoke on common law compensations that may be available under current ISDA legislation. However, the 1992 ISDA User Manual contains an application clause that is often included in the 1992 ISDAs. The compensation in the 1992 ISDA User Manual allows the non-failing party or the party not concerned, in the case of a „Credit Event Upon Merger“ termination event, to reduce the amount of dismissal it must pay23 to amounts owed by the other party (due or immature obligations), whether these amounts are due by that other party. , as part of the ISDA or another agreement between the parties. The Court of Appeal may have an opportunity to consider this judgment, which is currently being appealed. It is possible that the complaint will be heard at the same time as the complaint filed in Lomas. In the meantime, the parties will consider amending their ISDA master contracts to clarify that transactions for which amounts are still outstanding, whether on a real or conditional basis, within the definition of „futures contracts“ are „outstanding“ or „in the process of being implemented“ and that, therefore, the remaining amounts are not paid in the event of closure under Section 6. Between January 2007 and August 2008, Pioneer Freight Futures Co Ltd (Pioneer) and Cosco Bulk Carrier Co Ltd (Cosco) concluded 11 forward Freight Agreements (FFAs). All 11 FFA were included in the 2007 Forward Freight Agreement Brokers Association standard terms (the 2007 terms, which were added in reference to the 1992 ISDA Framework Agreement (Master Agreement). With respect to seven of them, Pioneer was the seller, and as far as four were, it was the buyer. Due to the inclusion of the executive contract, all FFAs were considered part of a single master`s contract that provided that automatic early termination would apply to each party.
Before the arrival or effective designation of an early termination date, a party who is late in fulfilling a payment obligation is required to pay, upon request, interest on the outstanding amount in the same currency as the amount due for the period to be counted and the original due date for payment, but without the actual date of payment. These interest payments must be made at the default rate or at the recipient`s financing costs plus 1% per year. Note that there were a number of concerns regarding the ISDA indications regarding the recipient`s financing costs in 1992 and 2002. First, the question arises as to whether a recipient is entitled to financing costs that take into account the financing costs of all types of financing, including the costs of equity financing, or whether those financing costs would only cover borrowing costs. In 2016, the High Court in London issued a judgment in the case of Lehman Brothers International (Europe) (In Administration), Re.,26, which clarified this point. With respect to the distribution of a large surplus in the event of the Lehman debtor`s insolvency, the Tribunal found that the concept of „financing costs“ in the definition of the default rate is limited to the costs of the initial consideration (not of another third party or an acquirer of the original counterparty)27 of borrowing the corresponding amount for the necessary period. Whether it is a fact or a hypothetical. The duration is not applicable to other costs and losses, such as the cost of equity financing or other financial disadvantages or consequential damages.