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

Thanks for the update, Jamie. We will consider this thread of discussion closed with no action taken on part of the CDWG.

Ben Lis

Head of Product Management & Integration

T-Zero

212.323.6041

www.tzero.com

From: cdwg@xxxxxxxx [mailto:cdwg@xxxxxxxx] On Behalf Of Orme, Jamie
Sent: Tuesday, November 27, 2007 1:44 PM
To: cdwg@xxxxxxxx
Subject: FpML-CD RE: Muni CDS - 'Moral Obligation Liability'

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