close-out netting provision

Defined in Article 2, Directive 2002/47/EC

Uses as of 08/05/2012

Definitions over time (1)

1. 30/06/2009 – today applies on 08/05/2012 Article 2, Directive 2002/47/EC Scope: Whole act

   ‘close-out netting provision’ means a provision of a financial collateral arrangement, or of an arrangement of which a financial collateral arrangement forms part, or, in the absence of any such provision, any statutory rule by which, on the occurrence of an enforcement event, whether through the operation of netting or set-off or otherwise: the obligations of the parties are accelerated so as to be immediately due and expressed as an obligation to pay an amount representing their estimated current value, or are terminated and replaced by an obligation to pay such an amount; and/or an account is taken of what is due from each party to the other in respect of such obligations, and a net sum equal to the balance of the account is payable by the party from whom the larger amount is due to the other party;

Used in (6 places in 4 provisions on 08/05/2012)

Directive 2002/47/EC (6 in 4)

Article 2² · Article 5 · Article 6 · Article 7²