Text extracted via OCR from the original document. May contain errors from the scanning process.
(h)
Interest and Compensation.
(i)
Prior to Early Termination. Prior to the occurrence or effective designation of an Earl•
Termination Date in respect of the relevant Transaction:—
(I)
Interest on Defaulted Payments. If a party defaults in the performance of any payment
obligation, it will, to the extent permitted by applicable law and subject to Section 6(c). pay interest
(before as well as after judgment) on the overdue amount to the other pant• on demand in the same
currency as the overdue amount. for the period from (and including) the original due date for
payment to (but excluding) the date of actual payment (and excluding any period in respect of
which interest or compensation in respect of the overdue amount is due pursuant to clause (3XB) or
(C) below), at the Default Rate.
(2)
Compensation for Defaulted Deliveries. If a parry• defaults in the performance of any
obligation required to be settled by delivery, it will on demand (A) compensate the other party to
the extent provided for in the relevant Confirmation or elsewhere in this Agreement and (B) unless
otherwise provided in the relevant Confirmation or elsewhere in this Agreement, to the extent
permitted by applicable law and subject to Section 6(c). pay to the other party interest (before as
well as after judgment) on an amount equal to the fair market value of that which was required to be
delivered in the same currency as that amount, for the period from (and including) the originally
scheduled date for delivery to (but excluding) the date of actual delivery• (and excluding any period
in respect of which interest or compensation in respect of that amount is due pursuant to clause (4)
below), at the Default Rate. The fair market value of any obligation referred to above will be
determined as of the originally scheduled date for delivery, in good faith and using commercially
reasonable procedures, by the party that was entitled to take delivery•.
(3)
Interest on Deferred Payments. If:—
(A)
a pant• does not pay any amount that, but for Section 2(aftiii), would have been
payable. it will, to the extent permitted by applicable law and subject to Section 6(c) and
clauses (B) and (C) below. pay interest (before as well as after judgment) on that amount
to the other party on demand (after such amount becomes payable) in the same currency as
that amount, for the period from (and including) the date the amount would, but for
Section 2(aftiii). have been payable to (but excluding) the date the amount actually
becomes payable, at the Applicable Deferral Rate:
03)
a payment is deferred pursuant to Section 5(d). the party which would otherwise
have been required to make that payment will, to the extent permitted by applicable law.
subject to Section 6(c) and for so long as no Event of Default or Potential Event of Default
with respect to that party has occurred and is continuing, pay interest (before as well as
after judgment) on the amount of the deferred payment to the other part• on demand (after
such amount becomes payable) in the same currency as the deferred payment. for the
period from (and including) the date the amount would. but for Section 5(d). have been
payable to (but excluding) the earlier of the date the payment is no longer deferred
pursuant to Section 5(d) and the date during the deferral period upon which an Event of
Default or Potential Event of Default with respect to that party occurs, at the Applicable
Deferral Rate: or
(C)
a party fails to make any payment due to the occurrence of an Illegality or a Force
Majeure Event (after giving effect to any deferral period contemplated by clause (B)
above), it will, to the extent permitted by applicable law, subject to Section 6(c) and for so
long as the event or circumstance giving rise to that Illegality or Force Majeure Event
17
ISDA45. 2002
CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e)
DB-SDNY-0105568
CONFIDENTIAL
SDNY GM_00251752
EFTA01450052