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MASTER MONTHLY NETTING AND CLOSEOUT NETTING AGREEMENT This Master Monthly Netting and CloseOut Netting Agreement (Agreement), entered into on this first day of February, 2001, constitutes the understanding.

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Netting is the process of offsetting payables with receivables to partially or completely clear the open items. In an organization receivables and payables transactions occur between the organization and the business partners.

Netting is a contractual arrangement between two parties. Essentially, it means that the parties have agreed that, when they transact with each other, they will not have individual cross-claims against each other.

If netting is applied, then the credit exposure of the portfolio is reduced to zero (the positive and negative exposures to each counterparty offset each other). The effect of netting on potential exposure is less clear, as it depends on the composition of the portfolio.

master netting agreement. An agreement that permits netting of amounts owed under transactions governed by different agreements, often including one or more ISDA Master Agreements.

Definition of Netting. A method of reducing credit, settlement and other risks of financial contracts by aggregating (combining) two or more obligations to achieve a reduced net obligation.

Close-out netting under the ISDA Master Agreement consists of three principal elements: early termination; valuation of the terminated transactions; and an accounting of those values, together with amounts previously due but unpaid, to arrive at a single net sum owing by one party to the other.

Example of Netting Investor A is due to receive $100,000 from Investor B. Investor B is due to receive $25,000 from Investor A. Instead of Investor B paying Investor A $100,000 and Investor A giving Investor B $25,000, the payments would be netted.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232