| Legal Opinion | August 2023 | «Cases & Lacambra drafts the new ISDA netting opinion for Andorra» |

The International Swaps and Derivatives Association, Inc. (ISDA) has today published a new legal opinion that recognizes the validity and enforceability under the laws of the Principality of Andorra of Close-out Netting Provisions under the ISDA Master Agreement. The new legal opinion, which Cases & Lacambra was pleased to produce, also covers the 2001 ISDA Cross-Agreement Bridge, the 2002 ISDA Energy Agreement Bridge, the Close-out Amount Protocol published by ISDA on 27 February 2009, the amendments set out in the Annexes to the 2014 Amendment to the ISDA Master Agreement in relation to Section 2(a)(iii) and the ISDA SFT Definitions and the related SFT Schedule Provisions.

The ISDA Master Agreement has established international contractual standards governing privately negotiated OTC derivatives transactions that reduce legal uncertainty and allow for reduction of credit risk through netting of contractual obligations. Ensuring the enforceability of the netting provisions of the ISDA Master Agreement remains a key initiative for ISDA. ISDA’s netting opinions address the enforceability of the termination, bilateral close-out netting and multibranch netting provisions of the 1992 and 2002 Master Agreements. In addition, ISDA has commissioned legal opinions on the enforceability of the ISDA Credit Support Documents in various jurisdictions. ISDA has published netting opinions covering over 80 jurisdictions and collateral opinions covering over 60 jurisdictions.

“We are delighted to draft the new legal opinion for Andorra. A significant milestone for the jurisdiction that enhances its international visibility“.

Miguel Cases and Laura Nieto, partners of the Financial Services team from Cases & Lacambra.