Break clause: Difference between revisions
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imported>Doug Williamson (Create the page. Source: The Treasurer, May 2012, p19.) |
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Revision as of 17:57, 6 April 2014
A break clause is a clause in a derivatives contract or other contract which provides for the release of the parties from further obligations under the contract, following the occurrence of a relevant event.
For example, following a deterioration in the creditworthiness of one of the parties.