Manufactured payments in respect of Loaned Securities - GMSLA Provision: Difference between revisions
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{ | {{fullanat|gmsla|6.2|2010}}In other words the {{gmslaprov|Borrower}} pays what the {{gmslaprov|Lender}} would have received net, by reference to the Lender's own situation. This means that the {{gmslaprov|Lender}} doesn't need to worry about different rates of tax or withholding applying to the {{gmslaprov|Borrower}}. Makes sense, really. | ||
In other words the {{gmslaprov|Borrower}} pays what the {{gmslaprov|Lender}} would have received net, by reference to the Lender's own situation. This means that the {{gmslaprov|Lender}} doesn't need to worry about different rates of tax or withholding applying to the {{gmslaprov|Borrower}}. Makes sense, really. | |||
{{nuts|GMSLA|Manufactured payments in respect of Loaned Securities}} | {{nuts|GMSLA|Manufactured payments in respect of Loaned Securities}} | ||
Revision as of 15:00, 18 September 2017
|
GMSLA Anatomy™
Where the term of a Loan extends over an Income Record Date in respect of any Loaned Securities, Borrower shall, on the date such Income is paid by the issuer, or on such other date as the Parties may from time to time agree, pay or deliver to Lender such sum of money or property as is agreed between the Parties or, failing such agreement, a sum of money or property equivalent to (and in the same currency as) the type and amount of such Income that would be received by Lender in respect of such Loaned Securities assuming such Securities were not loaned to Borrower and were retained by Lender on the Income Record Date.
|
In other words the Borrower pays what the Lender would have received net, by reference to the Lender's own situation. This means that the Lender doesn't need to worry about different rates of tax or withholding applying to the Borrower. Makes sense, really.
Manufactured payments in respect of Loaned Securities in a Nutshell™ (GMSLA edition)
6.2 Where a Loan extends over an Income Record Date, on the distribution date the Borrower must manufacture the Income the Lender would have received had it held the Loaned Securities on the Income Record Date.