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Simple English definitions for legal terms

plain-vanilla swap

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A quick definition of plain-vanilla swap:

A plain-vanilla swap is an agreement between two parties to exchange interest payments. One party pays a fixed interest rate while the other pays a floating interest rate based on the amount of the underlying debt. The underlying debt, called the "notional" amount, does not change hands, only the interest payments are exchanged. This type of swap is used to manage risk, speculate on interest rate changes, or convert an instrument from a fixed to a floating rate or vice versa.

A more thorough explanation:

A plain-vanilla swap is an agreement between two parties to exchange interest payments or obligations. This is usually done to manage risk, speculate on interest rate changes, or convert an instrument from a fixed to a floating rate or vice versa. The parties involved in this agreement are called counterparties.

A typical example of a plain-vanilla swap involves one party paying a fixed interest rate while the other party assumes a floating interest rate based on the principal amount of the underlying debt. The underlying debt, also known as the "notional" amount of the swap, does not change hands. Only the interest payments are exchanged.

For instance, let's say Company A has a loan with a fixed interest rate of 5%, while Company B has a loan with a floating interest rate based on the LIBOR rate. Company A may want to convert its fixed interest rate to a floating rate, while Company B may want to convert its floating rate to a fixed rate. They can enter into a plain-vanilla swap agreement where Company A pays a fixed interest rate to Company B, and Company B pays a floating interest rate to Company A based on the notional amount of the swap.

plain-touch doctrine | PLAM

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13:38
love you too bby
glovediedthisishismom
13:42
what if desantis appoints lara trump and matt gaetz to be floridas senators
Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
14:17
How are the vibes heading into thanksgiving yall?
HopefullyInLawSchool
14:17
@Law-Guy Im feeling kinda happy I applied YM to UCI hoping it helps (:
Wanna give some head
soap
14:18
Cornell
14:19
@HopefullyinLawSchool What's YM?
14:19
oh no
HopefullyInLawSchool
14:19
you mom
WorthlessAttractiveZombie
14:19
Ouch
HopefullyInLawSchool
14:19
your*
14:19
I fear I realized too late
babycat
14:20
another victim claimed
concorde
14:22
pwned
14:22
Might have to send in addendums for that
Dkk
14:26
No wave, so sad.
WorthlessAttractiveZombie
14:28
What are the odds that berk releases later today?
babycat
14:28
@Dkk: And here I thought you were a prophet. Smh.
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