Payment Obligation

Definition

Payment Obligation. Obligation to make payments on transactions.

In the case of derivatives transactions the obligation is documented in a Master Agreement, as specified in any Confirmation made by that party.

Context

The Payment Obligation and the Delivery Obligation may be set out in one clause of the Master Agreement. This is the clause which obligates the parties to make the payments or deliveries in accordance with those Confirmations, which are generally messages. May be subject to other provisions in the Master Agreement.

Example

"Each party will make each payment or delivery specified in each Confirmation to be made by it, subject to the other provisions of this Agreement. " Additional terms in the clause which follows the above, deal with more specific terms about payments.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.