In a Credit Default Swap (CDS) contract:

• The reference entity is the issuer of the debt, which in this case is ABC Company, not the bond itself.
• The reference obligation is the specific debt instrument on which credit protection is bought, which here is the 5-year bond issued by ABC Company.
• The protection seller (Company X) compensates the protection buyer (Bank A) only if a credit event (like a default) occurs, not automatically at the maturity of the CDS.
• The protection buyer (Bank A) pays periodic premiums until maturity or until a credit event occurs, rather than paying 'only' when a credit event occurs.