The State of the Netherlands v Deutsche Bank AG

The State of the Netherlands v Deutsche Bank AG

The ISDA Credit Support Annex (1995 edition, unamended) does not impose a legal obligation on the Transferor to account for negative interest on cash collateral; the agreement only contemplates payment of positive interest by the Transferee.

Parties
Claimant: The State of the Netherlands; Defendant: Deutsche Bank AG
Jurisdiction
England and Wales
Judgment Date
25 July 2018
Procedural Posture
Commercial Dispute / Final Judgment
Outcome
claim dismissed
Legal Topics
ISDA Agreements, Negative Interest, Derivatives, Collateral Arrangements
Contract Law Financial Law ISDA Agreements Negative Interest Derivatives Collateral Arrangements

Case Brief

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Parties

The State of the Netherlands

Claimant

Deutsche Bank AG

Defendant

Procedural Posture

Commercial Dispute / Final Judgment

Legal Issues

  1. 1 Whether the ISDA Credit Support Annex obliges the Transferor to account for negative interest on cash collateral

Ratio Decidendi

The ISDA Credit Support Annex (1995 edition, unamended) does not impose a legal obligation on the Transferor to account for negative interest on cash collateral; the agreement only contemplates payment of positive interest by the Transferee.

Court Disposition

claim dismissed