Guaranties

Guaranties in the derivatives context present unique challenges, including ensuring compliance with Dodd-Frank eligible contract participant requirements where guarantors who are not eligible contract participants must be excluded from guaranteeing swap obligations, navigating cross-border enforceability issues where guaranties may be subject to different legal standards and recognition across jurisdictions, addressing the interplay between guaranties and close-out netting provisions under ISDA documentation to ensure enforceability in bankruptcy, structuring guaranties to avoid fraudulent conveyance challenges particularly in cross-stream guaranty arrangements where sister corporations guarantee each other’s obligations, and coordinating guaranty terms with credit support documentation and collateral arrangements.