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The framework consists of a master agreement, a schedule, confirmations, definition booklets, and credit support documentation. The master agreement is a document agreed to between two parties that sets out standard terms that apply to all the transactions entered into between those parties.

The Schedule articulates contract terms regarding default, early termination, downgrade provisions, transfers, and tax provisions. All of these terms are negotiable; therefore, it is critical for a borrower have experienced representation, in order to negotiate the most advantageous terms in the Schedule.

The ISDA Master does not have any mechanism for termination of the ISDA Master, but only for termination of outstanding Transactions.

It is possible to enter into OTC derivative trades without a signed ISDA Master Agreement and often when this happens the Confirmation will include an undertaking between the parties that an ISDA Master Agreement will be negotiated and signed within a 30, 60 or 90 day period.

Banks require corporate counterparties to sign an agreement to enter into swaps. Some also demand agreements for foreign exchange transactions. While the ISDA Master Agreement is standard, some of its terms and conditions are amended and defined in the accompanying schedule.

In entering into an ISDA relationship parties must first agree on the ISDA form they will use and then negotiate certain provisions of the Agreement to ensure that their economic and legal rights are preserved.

It is possible to enter into OTC derivative trades without a signed ISDA Master Agreement and often when this happens the Confirmation will include an undertaking between the parties that an ISDA Master Agreement will be negotiated and signed within a 30, 60 or 90 day period.