In this regard, the inclusion of the regulation by the Italian system has not had a significant impact on the Italian over-the-counter market of bilateral master agreements (compensation agreements) with one of the non-financial and even foreign agreements, such as the European bank, particularly where such an over-the-counter market is governed by the master isDA or gmRA agreement. In particular, the EMIR regulation sets obligations for standardized OVER-the-counter contracts and non-highly atypical contracts, such as the aforementioned framework contracts. In addition, these commitments come into effect when the threshold of 0.2% of the issuer`s share capital or a certain equivalent amount of government bonds is reached, whereas they never apply to primary traders of government bonds, state CDS and market holders (provided that this exemption is previously notified to the competent supervisory authority). Under English law, often chosen by the parties, force majeure clauses are always strictly established by the parties (in accordance with Section 5 (b) (ii) of the 2002 master contract). On the other hand, in the Italian legal system, the application of Italian law to master contracts must be assessed by force majeure under the prudent interpretation of Section 56 of the Cura Italia decree. This provision provides that, as a result of the article 56 measures, underlying loans and other debts may be freely suspended by SMEs until 30 September 2020. The ISDA contract schedule is a master contract that manages various confirmations of individual swap transactions or other derivatives related to a fictitious transaction. The framework agreement is also qualified and lawful in Italy as a single contract with confirmations, since, according to Italian legal protection, Article 1933 of the Civil Code (« C.C.), the prohibition of purely vagary treaties and their non-protection, is not enforced. This uniform approach to the agreement is an integral part of the structure and part of the network-based protection offered by the framework agreement. The fact that all transactions are the sole contract enhances the ability to close these transactions and obtain a one-time net amount payable in the event of default. This question is relevant to swaps because it raises the question of whether there may be a termination event for « illegality » (i.e. a covered transaction that becomes illegal) or « force majeure » (in the 2002 ISDA executive contract).
Under the 2002 isda master contract, a « force majeure » event occurs when, due to a case of force majeure or a state deed that occurs after a transaction is concluded, exchange payments or marginal appeals are rendered virtually impossible. B, such as closing offices or stopping payment methods. Such events may give a affected party a temporary suspension period that prevents the termination of the swap contract for three working days for « illegality » or eight working days for a « force majeure event ». The main credit support documents in English law are the 1995 credit support annex, the 1995 credit support instrument and the 2016 credit support annex for the margin of change.