How Does the Enforceability of an ISDA Agreement Vary across Different Jurisdictions?

The enforceability of an ISDA Master Agreement, particularly the critical close-out netting provisions, depends heavily on the insolvency and bankruptcy laws of the jurisdiction where the defaulting party is located. While ISDA is globally recognized, some jurisdictions have not explicitly recognized the validity of close-out netting in their legal framework, which introduces 'legal risk' for cross-border transactions.