ISDA 2010 Hire Act Protocol
ISDA HIRE Act Protocol: Market Education Call - August 27th, 2010
The ISDA 2010 Hire Act Protocol (the “Protocol”) offers market participants an efficient way to amend their Covered ISDA Master Agreements to reflect amendments to the U.S. tax law resulting from the enactment of the HIRE Act (the "Act") on March 18, 2010. The Act imposes US withholding tax on payments made on any swap made after September 14, 2010 regardless of when the swap was entered into.
Please refer to the "Memo on Hire Act Protocol" for a summary of the changes to the ISDA Master Agreement and Schedule made by this Protocol.
The Protocol is open to ISDA members and non-members. There is no cut-off date to this protocol. ISDA does however reserve the right to designate a cut-off date by giving 30 days notice on this site.
Pursuant to Section 2(a) of the ISDA 2010 HIRE Act Protocol, ISDA is designating a Cut-off Date under this Protocol of December 15, 2010. After this date, ISDA will not accept any further Adherence Letters to the ISDA 2010 HIRE Act Protocol. Existing adherence letters and amendments made by the terms of this Protocol are not impacted by this designation.
PLEASE NOTE: THIS PROTOCOL IS CLOSED.
The following documents must be submitted via email to the ISDA office in New York in order to adhere to the ISDA 2010 Hire Act Protocol :
ISDA will only accept email delivery of Adherence Letters. An Adhering Party is not required to send original Adherence Letters to the ISDA offices.
Please submit all Adherence Letters via email to firstname.lastname@example.org. It is critical that both a scanned, signed Adherence Letter, as well as a scanned, conformed Adherence Letter is submitted. Entities will not be deemed to have adhered to the Protocol until both the signed and conformed Adherence Letters are submitted by email in accordance with the Adherence Period.
No other documents are required in order to adhere to the ISDA 2010 Hire Act Protocol. Supporting documentation, such as board resolutions or a list of authorized signatures, can be provided and will be held in safekeeping by ISDA, but it is not necessary to submit such documents in order to adhere to the Protocol. Access to supporting documentation will only be provided if requested in writing.
Email address for Delivery of Adherence Letters:
Policy Regarding Conformed Copies
The most common problem experienced in the adherence process for prior Protocols was the failure to include a conformed copy of the Adherence Letter. We remind parties that a conformed copy, together with a signed copy, must be submitted to ISDA in connection with adherence to the ISDA 2010 Hire Act Protocol.
|Frequently Asked Questions|
ISDA has prepared this brief summary of frequently asked questions to assist in your consideration of the ISDA 2010 Hire Act Protocol (the "Protocol").
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 PROTOCOL. PARTIES SHOULD CONSULT WITH THEIR LEGAL ADVISERS AND ANY OTHER ADVISER THEY DEEM APPROPRIATE PRIOR TO USING OR ADHERING TO THE PROTOCOL. ISDA ASSUMES NO RESPONSIBILITY FOR ANY USE TO WHICH ANY OF ITS DOCUMENTATION OR OTHER DOCUMENTATION MAY BE PUT.
Adherence Letter Submission Process
How do I send in my Adherence Letter?
What is a conformed copy?
Who is an authorized signatory?
What if I am an investment or asset manager – how do I complete the signature block?
Can I change the text of the Adherence Letter?
Limited Right of Revocation
You can, however, bilaterally agree to amend your Covered Master Agreement with your counterparty (the other Adhering Party) and any such subsequent amendments will supersede those made by the Protocol to the extent that they are inconsistent.
Does it cost any money to adhere to the Protocol?