Close-out netting and Presentment: Difference between pages

Revision as of 07:14, 2 July 2022

The act of presenting a negotiable instrument to the person on whom it is drawn for acceptance or payment.

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-A special form of netting that occurs following some predefined event such as default.
+The act of presenting a negotiable instrument to the person on whom it is drawn for acceptance or payment.
-Close-out netting is intended to reduce exposures on open contracts if one party meets certain conditions specified by the contract (for example, becomes subject to insolvency procedures) before the settlement date.
-Also referred to as default netting, open contract netting or replacement contract netting.
+== See also ==
+* [[Negotiable instrument]]
+* [[Presenting bank]]
-== See also ==
+[[Category:Cash_management]]
-* [[Netting]]
+[[Category:Liquidity_management]]
-* [[Open contract netting]]