The BSFP and the opposing party agreed to conclude this agreement instead of negotiating a timetable for the 1992 ISDA Masteragrement (the ISDA Form-Master Agreement). Under the 1992 Master Contract, Market Quotation provides an objective measure for calculating the amount of early termination through its 2002 form, which does not have a prohibition on the 1992 form from issuing notices of delay and early termination by fax. Communications in Sections 5 and 6 of the 2002 Form may be faxed, but cannot be made explicitly by e-mail or any other electronic means of communication. Messages sent for other purposes can be sent by e-mail and take effect on the day the email is sent. In addition, Form 2002 provides that confirmation can be established through an email exchange. We believe that the e-mail provisions will give rise to some controversy. The parties hereafter agree that the text of this agreement must be the printed form of the 1992 ISDA Master Agreement (Multicurrency-Cross Border), as published by the International Swaps and Derivatives Association, Inc. and protected by copyright. This only applies to the 1992 masteragrement. The 2002 Master Agreement rejected the first and second methods. In practice, the first method was very rarely chosen, as the financial institutions concerned had to declare their gross commitment and not the net commitment under the masteragrement. The 2002 Master Agreement also replaced the distinction between market quotation and loss with a single concept, “Close-out Amount.” This transaction is intended for each transaction completed and is, on the whole, the profit or loss that would result from the conclusion of an equivalent transaction at the time of the early termination.
The aggregate of close-out and unpaid amounts is called “notice.” This is the net amount payable from one party to the other for terminated transactions. The framework contract is quite long and the negotiation process can be difficult, but once a framework contract is signed, the documentation of future transactions between parties will be reduced to a brief confirmation of the essential terms of the transaction. The Captain`s Agreement is a document agreed between two parties, which sets standard conditions for all transactions between these parties. Each time a transaction is concluded, the terms of the framework agreement should not be renegotiated and applied automatically. At the same time as the timetable, the framework agreement defines all the general conditions necessary for the proper distribution of the risks of transactions between the parties, but does not contain specific terms and conditions for a particular transaction. Once the framework agreement has been concluded, the parties can enter into numerous transactions by agreeing to the essential terms and conditions over the telephone, as confirmed in writing, without the need to re-consider the terms of the framework agreement. ISDA-Masteragrement (Multicurrency-Cross Border) (Master Agreement 1992); In addition, close-out mechanisms related to termination events (for example. B the party that may designate an early termination date, the possibility of closing all or some of the transactions involved, etc.) were amended from the 1992 form.