The International Swaps and Derivatives Association, Inc. (ISDA) today announced the publication of updated documentation for use in arrangements with counterparties or collateral assets located in Japan. ISDA has published this revised version of the 1995 ISDA Credit Support Annex (Security Interest – Japanese Law) to reflect changes in legislation in Japan.
This template is intended for use in documenting bilateral security and other credit support arrangements between counterparties for transactions documented under an ISDA Master Agreement under which at least one of the parties and/or the collateral is located in Japan as credit support. This Annex assumes that Japanese law will govern questions of perfection and priorities relating to posted collateral located in Japan and is designed mainly to provide documentation for parties wishing to minimize exposure to counterparties through collateral arrangements in respect of cash, deposit accounts, Japanese government bonds or other marketable securities situated in Japan.
The revisions made to the 1995 version reflect new netting, bankruptcy and securities clearing system legislation, which were implemented after the Japanese Annex was published in 1995.
The revised Credit Support Annex template is available at ISDA’s website www.isda.org.