FpML-CD RE: Muni CDS - 'Moral Obligation Liability'

["Orme, Jamie" <Jamie.Orme@xxxxxx>]

Following further investigation it appears that we do not need to add 'Moral Obligation Liability' to the schema after all.  It appears that this is a carve out from the definition of 'General Fund Obligation Liability' and 'Revenue Obligation Liability' and from what I can gather it is always 'Not Applicable' .

 

Thanks

 

Jamie

---

From: Orme, Jamie
Sent: Thursday, November 08, 2007 7:25 PM
To: 'cdwg@xxxxxxxx'
Subject: Muni CDS - 'Moral Obligation Liability'

CDWG,

We would like to add 'Moral Obligation Liability' to the creditDefaultSwap schema to fully support Muni CDS.

I believe that this is defined in the ISDA additional provisions (attached), as follows:

 

'“Moral Obligation Liability” means any liability of the Reference Entity that is contingent upon an appropriation being made by the governing body or other official of the Reference Entity'

 

I have changed the schema (also attached) in all relevant places as per the below:

 

 

 

Could we get together to discuss whether or not this modification to the schema can be formally adopted?

 

Many Thanks

 

Jamie