Frequently Asked Questions
ISDA has prepared this brief summary of frequently asked questions to assist in your consideration of the Novation Protocol II (“NPIl”). THIS FREQUENTLY ASKED QUESTIONS DOES NOT PURPORT TO BE AND SHOULD NOT BE CONSIDERED A GUIDE TO OR AN EXPLANATION OF ALL RELEVANT ISSUES OR CONSIDERATIONS IN CONNECTION WITH THE NPII. PARTIES SHOULD CONSULT WITH THEIR LEGAL ADVISERS AND ANY OTHER ADVISER THEY DEEM APPROPRIATE PRIOR TO USING OR ADHERING TO THE NPII. ISDA ASSUMES NO RESPONSIBILITY FOR ANY USE TO WHICH ANY OF ITS DOCUMENTATION OR OTHER DOCUMENTATION MAY BE PUT.
This Frequently Asked Questions webpage is divided into three sections: (i) questions relating to the submission of Adherence Letters; (ii) questions relating to the election of an entity not to participate in NPII; and (iii) questions relating to the substance of the NPII itself.
ADHERENCE LETTER SUBMISSION
Adherence Letter Submission Process
How do I send in my Adherence Letter?
The Adherence Letter(s) should be on your institution’s letterhead. Nothing in the form Adherence Letter available on ISDA’s website may be changed with the exception of completing the details of your institutional name, date and signature block.
Please do not send your original Adherence Letter(s) by mail to ISDA.
What is a conformed copy?
You must also submit an executed, or signed, copy of the Adherence Letter in addition to the conformed copy of the Adherence Letter. ISDA keeps the executed copy of the Adherence Letter for its files and does not share the executed copy with anyone else.
Who is an authorized signatory?
SPECIAL CONSIDERATIONS FOR INVESTMENT/ASSET MANAGERS
What if I am an investment or asset manager – how do
I complete the signature block?
If you have the ability to add new funds to a Master Agreement by an amendment, you may wish to complete the signature block as follows:
"Investment/Asset Manager, acting on behalf of the funds and accounts as listed in the Annex to the relevant Master Agreement (as amended from time to time) between it and another Adhering Party"
Depending on the method by which you have signed the Protocol, you may need to submit additional adherence letters when you add new funds. Please contact ISDA for further details.
Can I change the text of the Adherence Letter?
Does it cost any money to adhere to the Novation Protocol
ENTITIES ELECTING NOT TO ADHERE TO THE NOVATION PROTOCOL II.
What alternatives (if any) are there to participating in
the 2005 Novation Protocol II?
DETAILS RELATING TO THE ISDA NOVATION PROTOCOL II
What changes have been made to the operative novation provisions
(Annex I) to the Protocol since the 2005 Novation Protocol?
Limited Right of Revocation
An Adhering Party may, at any time during the period from January 1 to January 31 of a calendar year, deliver to ISDA a notice specifying the Annual Revocation Date as its cut-off date in respect of amendments with future Adhering Parties. The effect of such a letter will be to withdraw adherence for future Adhering Parties as of February 15 in that calendar year. Although amendments already made will not be revoked, any subsequent adherence by new Adhering Parties after the designated Annual Revocation Date, will not bind the party that has submitted a Revocation Notice.
Does the NPII in any way effect NPI
If I adhered to NPI, do I have to also adhere to NPII?