Cross-Product Netting

Cross-Product Netting

Date: Wednesday, July 6, 2022

Time: 5:30 to 6:30 pm ET

If you are a transactional attorney who represents financial institutions that offer more than one product to their customers (or you represent the customers), you need to attend this program.  As the economy slows, what happens if the “music stops” and one party to your transactions defaults, possibly filing for bankruptcy?   If the legal documents were not properly drafted, the financial institution might be required to make a substantial payment to the defaulting customer even though the defaulting customer still owes substantial sums to the financial institution.  And all because of the legal documents!  (Call the malpractice insurer!)

This Cross-Product Netting presentation will discuss the legal concept of set-off, which underpins cross-product netting, in addition to variations of set-off that include operational netting, close-out netting and triangular set-off. The cross-product netting presentation will discuss mechanisms that have been used to address this issue, such as set-off clauses, master agreements, and ‘bridge’ agreements, in addition to discussing the obstacles preventing any one perfect solution.

Presenters: Christian Pugaczewski and Andrew Demick

To register: awilliams@hunton.com