Credit Support Annex

A credit support annex provides credit protection by setting forth the rules governing the mutual posting of collateral. CSAs are used in documenting collateral arrangements between two parties that trade privately negotiated (over-the-counter) derivative securities. The trade is documented under a standard contract called a master agreement, developed by the International Swaps and Derivatives Association (ISDA). The two parties must sign the ISDA master agreement and execute a credit support annex before they trade derivatives with each other.

In addition to executing the ISDA master agreement and credit support annex, issuers must implement proper resolutions that give authorization to execute any derivative transactions. Each issuer must also obtain an opinion from its respective legal counsel about whether both parties can enter into swap transactions. Issuers must also ensure that such contracts are binding and enforceable, and obtain final credit approval from a bank.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Credit Support Annex — A Credit Support Annex, or CSA, is a legal document which regulates credit support (collateral) for derivative transactions. It is one of the four parts that make up an ISDA Master Agreement but is not mandatory. It is possible to have an ISDA… …   Wikipedia

  • ISDA Credit Support Annex — USA ISDA Credit Support Annex (CSA) The 1994 Credit Support Annex (CSA) published by the International Swaps and Derivatives Association, Inc. (ISDA). This document governs collateral arrangements betwe …   Law dictionary

  • Credit Union Atlantic — Type Credit union Industry Financial services Founded 1949 Headquarters Halifax, Nova Scotia …   Wikipedia

  • Carbon credit — This article deals with carbon credits for international trading. For carbon credits for individuals, see personal carbon trading. For voluntary schemes, see carbon offset. Part of a series on …   Wikipedia

  • CSA — abbreviation for Child Support Agency. Collins dictionary of law. W. J. Stewart. 2001. CSA …   Law dictionary

  • confirmation — con·fir·ma·tion /ˌkän fər mā shən/ n 1: the act or process of confirming, assuring, or upholding seeking confirmation of the agreement; specif: the ratification of an executive act by a legislative body senate confirmation of the Supreme Court… …   Law dictionary

  • Collateral management — Collateral has been used for hundreds of years to provide security against the possibility of payment default by the opposing party in a trade. Collateral management began in the 1980s, with Bankers Trust and Salomon Brothers taking collateral… …   Wikipedia

  • CSA — NOTOC CSA may refer to:* Canadian Space Agency * Canadian Standards Association * Casting Society of America * Central des Syndicats Autonomes du Bénin (Autonomous Trade Unions Centre) a trade union centre in Benin * Central Statistical Agency of …   Wikipedia

  • Security interest — A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation, usually the payment of a debt.[1] It gives the beneficiary of the security interest certain… …   Wikipedia

  • margin — mar·gin / mär jən/ n 1: the difference between net sales and the cost of the merchandise sold from which expenses are usu. met or profits derived 2: the amount by which the market value of collateral is greater than the face value of a loan 3 a:… …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.