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Template:GMSLA 2010 11.2: Difference between revisions
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{{gmslaprov|11.2}} The {{gmslaprov|Parties}}’ delivery and payment obligations (and any other obligations they have under this {{gmslaprov|Agreement}}) shall be accelerated so as to require performance thereof at the time such {{gmslaprov|Event of Default}} occurs (the date of which shall be the '''{{gmslaprov|Termination Date}}''') so that performance of such delivery and payment obligations shall be effected only in accordance with the following provisions. <br> | {{gmslaprov|11.2}} The {{gmslaprov|Parties}}’ delivery and payment obligations (and any other obligations they have under this {{gmslaprov|Agreement}}) shall be accelerated so as to require performance thereof at the time such {{gmslaprov|Event of Default}} occurs (the date of which shall be the '''{{gmslaprov|Termination Date}}''') so that performance of such delivery and payment obligations shall be effected only in accordance with the following provisions. <br> | ||
:(a) The {{gmslaprov|Default Market Value}} of the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} and {{gmslaprov|Equivalent}} {{gmslaprov|Non-Cash Collateral}} to be delivered and the amount of any {{gmslaprov|Cash Collateral}} (including sums accrued) to be repaid and any other cash (including interest accrued) to be paid by each {{gmslaprov|Party}} shall be established by the {{gmslaprov|Non-Defaulting Party}} in accordance with paragraph {{gmslaprov|11.4}} and deemed as at the {{gmslaprov|Termination Date}}. <br> | :(a) The {{gmslaprov|Default Market Value}} of the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} and {{gmslaprov|Equivalent}} {{gmslaprov|Non-Cash Collateral}} to be delivered and the amount of any {{gmslaprov|Cash Collateral}} (including sums accrued) to be repaid and any other cash (including interest accrued) to be paid by each {{gmslaprov|Party}} shall be established by the {{gmslaprov|Non-Defaulting Party}} in accordance with paragraph {{gmslaprov|11.4}} and deemed as at the {{gmslaprov|Termination Date}}. <br> | ||
:(b) On the basis of the sums so established, an account shall be taken (as at the {{gmslaprov|Termination Date}}) of what is due from each {{gmslaprov|Party}} to the other under this {{gmslaprov|Agreement}} (on the basis that each {{gmslaprov|Party}}’s claim against the other in respect of delivery of {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Non-Cash Collateral}} equal to the {{gmslaprov|Default Market Value}} thereof) and the sums due from one {{gmslaprov|Party}} shall be set off against the sums due from the other and only the balance of the account shall be payable (by the {{gmslaprov|Party}} having the claim valued at the lower amount pursuant to the foregoing) and such balance shall be payable on the next following {{gmslaprov|Business Day}} after such account has been taken and such sums have been set off in accordance with this paragraph. For the purposes of this calculation, any sum not denominated in the {{gmslaprov|Base Currency}} shall be converted into the {{gmslaprov|Base Currency}} at the Spot Rate prevailing at such dates and times determined by the {{gmslaprov|Non-Defaulting Party}} acting reasonably. <br> | :(b) On the basis of the sums so established, an account shall be taken (as at the {{gmslaprov|Termination Date}}) of what is due from each {{gmslaprov|Party}} to the other under this {{gmslaprov|Agreement}} (on the basis that each {{gmslaprov|Party}}’s claim against the other in respect of delivery of {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Non-Cash Collateral}} equal to the {{gmslaprov|Default Market Value}} thereof) and the sums due from one {{gmslaprov|Party}} shall be set off against the sums due from the other and only the balance of the account shall be payable (by the {{gmslaprov|Party}} having the claim valued at the lower amount pursuant to the foregoing) and such balance shall be payable on the next following {{gmslaprov|Business Day}} after such account has been taken and such sums have been set off in accordance with this paragraph. For the purposes of this calculation, any sum not denominated in the {{gmslaprov|Base Currency}} shall be converted into the {{gmslaprov|Base Currency}} at the {{gmslaprov|Spot Rate}} prevailing at such dates and times determined by the {{gmslaprov|Non-Defaulting Party}} acting reasonably. <br> | ||
:(c) If the balance under sub paragraph (b) above is payable by the {{gmslaprov|Non-Defaulting Party}} and the {{gmslaprov|Non-Defaulting Party}} had delivered to the {{gmslaprov|Defaulting Party}} a {{gmslaprov|Letter of Credit}}, the {{gmslaprov|Defaulting Party}} shall draw on the {{gmslaprov|Letter of Credit}} to the extent of the balance due and shall subsequently deliver for cancellation the {{gmslaprov|Letter of Credit}} so provided. <br> | :(c) If the balance under sub paragraph (b) above is payable by the {{gmslaprov|Non-Defaulting Party}} and the {{gmslaprov|Non-Defaulting Party}} had delivered to the {{gmslaprov|Defaulting Party}} a {{gmslaprov|Letter of Credit}}, the {{gmslaprov|Defaulting Party}} shall draw on the {{gmslaprov|Letter of Credit}} to the extent of the balance due and shall subsequently deliver for cancellation the {{gmslaprov|Letter of Credit}} so provided. <br> | ||
:(d) If the balance under sub paragraph (b) above is payable by the {{gmslaprov|Defaulting Party}} and the {{gmslaprov|Defaulting Party}} had delivered to the {{gmslaprov|Non-Defaulting Party}} a {{gmslaprov|Letter of Credit}}, the {{gmslaprov|Non-Defaulting Party}} shall draw on the {{gmslaprov|Letter of Credit}} to the extent of the balance due and shall subsequently deliver for cancellation the {{gmslaprov|Letter of Credit}} so provided. <br> | :(d) If the balance under sub paragraph (b) above is payable by the {{gmslaprov|Defaulting Party}} and the {{gmslaprov|Defaulting Party}} had delivered to the {{gmslaprov|Non-Defaulting Party}} a {{gmslaprov|Letter of Credit}}, the {{gmslaprov|Non-Defaulting Party}} shall draw on the {{gmslaprov|Letter of Credit}} to the extent of the balance due and shall subsequently deliver for cancellation the {{gmslaprov|Letter of Credit}} so provided. <br> | ||