Counterparty Definition

GLOSSARY

Published by a ��Ӱ�� Pensions expert

What does Counterparty mean?

The other party to a transaction.

For pensions funds there are increasing concerns that creative investments (such as swaps or other derivatives) may be made on their behalf by their investment bank advisers with organisations which may fail (were there to be a financial crisis) before they could fulfil their part of the bargain. Counterparty risks are generally underrated and underpriced.

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ISDA documentation in a finance transaction—checklist

ISDA documentation in a finance transaction—checklist This checklist sets out the key ISDA documentary requirements which need to be considered during the course of a financing transaction. Term sheet stage • if acting for a borrower and specialist hedging advisors are instructed, get their input on the term sheet • if acting for a borrower, ensure that the overall pricing of the transaction is understood (across both the loan and the hedging). A borrower may choose a particular lender based on a low margin offered on the loan, but then find that the credit spread on the swap offered by the same lender means that the overall economics of the transaction are less attractive than those offered by a different lender • is the loan and hedging on an IBOR basis (eg EURIBOR) or on a risk free rate (eg SONIA)? Will the loan transition from an IBOR to a RFR during its term and, if so, how will the hedging be dealt with? • does the lender require a...

Bank Recovery and Resolution Directive (BRRD)—timeline [Archived]

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Money Laundering Regulations 2017—CDD quick reference guide—individuals

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Energy legislation tracker 2017 [Archived]

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Discover our 625 Practice Notes on Counterparty

Ireland—Notice of assignment of contract—from assignor

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Dive into our 72 Precedents related to Counterparty

A client is letting a property to a tenant who is the Secretary of State for a UK government department. What is the correct form of execution of a deed by the Secretary of State? The tenant’s solicitor proposes to execute the document by way of affixing the seal of the Secretary of State to the document together with a signature of an authorised person. Is there authority to do this?

A client is letting a property to a tenant who is the Secretary of State for a UK government department. What is the correct form of execution of a deed by the Secretary of State? The tenant’s solicitor proposes to execute the document by way of affixing the seal of the Secretary of State to the document together with a signature of an authorised person. Is there authority to do this? Government departments and government ministers (when acting in their official rather than their personal capacity) are generally regarded as emanations of the crown, which itself is considered to be a corporation sole. A corporation sole consists of one person and their successors in some particular office or station, who are incorporated by law in order to give them certain legal capacities and advantages which they would not have in their natural person. Execution of deeds by a corporation sole is not regulated by section 46 of the Companies Act 2006, nor section 74(1) of the Law of...

Does section A21 of the Insolvency Act 1986, which places restrictions on the legal and enforcement proceedings that may be commenced against a company subject to the new ‘moratorium’, prevent a party to a construction contract commencing or enforcing adjudication against a counterparty that is subject to the moratorium?

Does section A21 of the Insolvency Act 1986, which places restrictions on the legal and enforcement proceedings that may be commenced against a company subject to the new ‘moratorium’, prevent a party to a construction contract commencing or enforcing adjudication against a counterparty that is subject to the moratorium? Section 1 of the Corporate Insolvency and Governance Act 2020 (CIGA 2020) introduces a new Part A1 to the Insolvency Act 1986 (IA 1986), which enables eligible companies to apply for a statutory moratorium. The moratorium is designed to allow viable businesses time to restructure or seek new investment, free from creditor action. In terms of IA 1986, s A21, during the moratorium, ‘(e) no legal process (including legal proceedings, execution, distress or diligence) may be instituted, carried out or continued against the [eligible] company, except…(iii) with the permission of the court’. Before considering further how this might impact on the ability of a party to a construction contract, to either commence an adjudication against a counterparty who...

See the 36 Q&As about Counterparty

Energy weekly highlights—12 December 2024

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