ISDA Master Agreement

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A commonly used standardised contract between counterparties trading OTC derivatives.

ISDA Master Agreements
"The ISDA master agreements set out standard terms and conditions applicable to parties’ transactions, together with a schedule.
The schedule gives the parties the ability to adjust the master agreement to their requirements by completing blanks, selecting alternative operative provisions and amending the master agreement where appropriate."

Escrow provisions in ISDA arrangements
"... extra provision required by the parties... may include:
escrow provisions to address potential problems arising from time differences between the places to which each party makes payments (i.e. one party could make a payment at the time it is obliged to do so in the relevant time zone but then fail to receive payment due to it from the other party); in this situation provision can be made for a third party to hold payments “in escrow” and only release a payment when it has received the corresponding payment from the other party."
The Treasurer's Wiki - Derivatives documentation

See also