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Clifford Chance

Briefings

ISDA Credit Support Annex: Court of Appeal re-affirms no obligation to pay 'negative interest'

14 May 2019

The English Court of Appeal has ruled on whether the standard form ISDA 1995 Credit Support Annex contains an obligation to pay negative interest. The Court's judgment re-affirms that, where parties have not otherwise agreed how to address negative interest rates, there is no obligation in the CSA on a party transferring eligible collateral in the form of cash to pay or otherwise account for negative interest on that cash.

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