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Template:M summ Pledge GMSLA 10: Difference between revisions
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Now there's a subtle point to look out for here about control over assets. If, as you are likely to have under a {{pgmsla}}, you have ''[[pledge]]d'' your assets to an [[escrow agent]] or third party [[custodian]], the key (for your financial reporting friends and relations) will be that you retain ownership of those assets and, more to the point, they stay ''outside'' the [[insolvency estate|bankruptcy estate]] of your {{pgmslaprov|Lender}}. That’s the whole reason you have the {{pgmsla}} and not an ordinary [[title-transfer]] {{gmsla}} in the first place — to avoid having to hold capital against the credit risk of your {{pgmslaprov|Lender}}s for the return of excess {{pgmslaprov|Collateral}}. | [[10 - GMSLA Provision|Now]] there's a subtle point to look out for here about control over assets. If, as you are likely to have under a {{pgmsla}}, you have ''[[pledge]]d'' your assets to an [[escrow agent]] or third party [[custodian]], the key (for your financial reporting friends and relations) will be that you retain ownership of those assets and, more to the point, they stay ''outside'' the [[insolvency estate|bankruptcy estate]] of your {{pgmslaprov|Lender}}. That’s the whole reason you have the {{pgmsla}} and not an ordinary [[title-transfer]] {{gmsla}} in the first place — to avoid having to hold capital against the credit risk of your {{pgmslaprov|Lender}}s for the return of excess {{pgmslaprov|Collateral}}. | ||
On the other hand, at the point where you, {{pgmslaprov|Borrower}}, are spiralling into a Lehman-shaped crater in the side of a hill is just the point where jumpy Sir from the {{pgmslaprov|Lender}}’s credit sanctioning team will be hyperventillating, jumping up and down on the spot and shrieking at anyone within earshot how he’d like to “put a cap in yo’ ass” and just go and ''take'' those assets away from you and start liquidating them. | On the other hand, at the point where you, {{pgmslaprov|Borrower}}, are spiralling into a Lehman-shaped crater in the side of a hill is just the point where jumpy Sir from the {{pgmslaprov|Lender}}’s credit sanctioning team will be hyperventillating, jumping up and down on the spot and shrieking at anyone within earshot how he’d like to “put a cap in yo’ ass” and just go and ''take'' those assets away from you and start liquidating them. | ||