Use of Posted Collateral (VM) - NY VM CSA Provision: Difference between revisions

Use of Posted Collateral (VM) - NY VM CSA Provision (view source)

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 Right?
-Except that you have the right to sell my asset, absolutely, to anyone else you want to, at any time, or actually, damn the torpedoes, hold it in your own name. Whereupon my claim against you is for the return of an asset you don’t have, or have put into your general [[bankruptcy estate]], so you would have to go and buy it in the market, but since you have blown up, you can’t realistically do that, so I am, after all, your unsecured creditor and all this talk of security interests is a nonce.
+Except that, the moment you get it, you may unconditionally sell my asset, absolutely, to anyone else you want to, at any time, or actually, damn the torpedoes, just take it onto your own balance sheet and hold it in your own name. Whereupon, my claim against you is for the return of my asset that you no longer have, or have put into your general [[bankruptcy estate]], so you would have to go and buy it in the market, but since you have blown up, you can’t realistically do that, so I am, after all, your unsecured creditor and all this talk of security interests is a nonce.
 Note that your right to flog off my asset evaporates should you commit an {{isdaprov|Event of Default}}, {{isdaprov|Early Termination Event}} or one of the {{nyvmcsa}}’s {{nyvmcsaprov|Specified Condition}}s but — courtesy of Paragraph {{nyvmcsaprov|7(ii)}}, your right to call a default as a result of my continuing to flog off your assets — there doesn’t seem to be an obligation to buy back assets once they’re sold, by the way — only kicks in after 5 {{nyvmcsaprov|Local Business Days}}, by which stage even the guys disconsolately wandering around outside the office clutching [[Iron Mountain]] boxes will have pushed off.