Events of Default - GMRA Provision: Difference between revisions

Events of Default - GMRA Provision (view source)

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 {{gmraanat|10|2000}}
-===The dog that didn't bark in the nighttime===
+===The dog that didn’t bark in the nighttime===
 Most interesting is what is '''not''' in there: There is no:
 *{{gmraprov|Cross Default}}
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 ===A sensible approach?===
-Some scholars—okay: one - and no it isn't the [[Jolly Contrarian]] although he does get the point—have intimated that the {{1995gmra}} got this right and the {{2000gmra}} got it wrong. For the following reasons:
+Some scholars—okay: one - and no it isn’t the [[Jolly Contrarian]] although he does get the point—have intimated that the {{1995gmra}} got this right and the {{2000gmra}} got it wrong. For the following reasons:
 *'''Initiation''': A delivery failure by a {{gmraprov|Lender}} when initiating a repo has no consequence – it is neither an Event of Default, nor a breach of contract.  Section {{gmraprov|10(g)}} allows the {{gmraprov|Buyer}} to terminate the repo at any time while the delivery failure is continuing ''or'' to work with the {{gmraprov|Seller}} to initiate the repo on a later date.
 *'''Scheduled maturity''': A redelivery failure by a {{gmraprov|Borrower}} at term is not an {{gmraprov|Event of Default}}. Rather, the {{gmraprov|Lender}} may [[buy in]] the securities using section {{gmraprov|10(h)}}.