ISDA 2019 Bank Custodian CTA and SAs
ISDA Bank Custodian Collateral Transfer Agreement and Security Agreements (English, NY, Luxembourg, Irish, Belgium, French, Korean, and Hong Kong Law)
The following documents are used to document a collateral arrangement between two parties where the collateral is held in a bank custodian account for use in complying with initial margin requirements. These documents have been prepared to allow parties to apply one governing law to the mechanical aspects of the collateral relationship and a different governing law to the grant and enforcement of security over the segregated account or segregated collateral, as applicable. The form of Security Agreements provided are governed by English, New York, Luxembourg, Belgian, French, Irish, Korean, or Hong Kong law and have been prepared as example security agreements. The governing law of the Collateral Transfer Agreement defaults to the governing law of the underlying ISDA Master Agreement. Parties using a French law governed ISDA Master Agreement should incorporate the ‘Recommended Amendment Provisions for ISDA Bank Custodian CTA for use with French law ISDA Master Agreement’, which is provided as a standalone document. Parties using the Korean law Security Agreement should incorporate the Recommended Amendment Provisions for KRW Collateral (IM) set out in the KRW Collateral (IM) Addendum for use with the ISDA Bank Custodian CTA, which is provided as a standalone document.
Annotated versions of the ISDA 2019 Bank Custodian Collateral Transfer Agreement for Initial Margin (IM) and the ISDA 2019 Luxembourg Law Security Agreement for Initial Margin (IM) are also included, setting out descriptions and explanations of the impact of each of the common elections that may be made in the documents. A User’s Guide to the 2018 & 2019 ISDA Regulatory Initial Margin Documentation, including the documents below, is available here.
The SEC IM Supplement (Third Party Segregation) supplement is designed for use where a party is subject to SEC regulatory initial margin (IM) requirements, and the parties wish to segregate their SEC IM with an independent custodian. It relies on the segregation terms contained in the existing ISDA initial margin documents, and can be used with any of the following: 2018 IM CSA, 2018 IM CSD, 2019 Bank Custodian CTA, 2019 Clearstream CTA, and 2019 Euroclear CTA. You can access this supplement here.
Note (1): ISDA has published “ISDA Supplemental Regime Definitions for Use with Regulatory Margin Collateral Documentation” related to certain Regimes that have come into force since publication of the ISDA 2019 Bank Custodian Collateral Transfer Agreement for Initial Margin, available here.
Note (2): ISDA has published the ISDA 2022 Belgian Law Security Agreement for IM. This version of the Belgian law form of Security Agreement reflects updates to the Belgian Companies Code expanding the type of Belgian entities that are permitted to issue fungible dematerialised securities.
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