Template:Nutshell GMSLA 5.4: Difference between revisions

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Created page with "{{gmslaprov|5.4}} Unless "single {{gmslaprov|Loan}} margining" under {{gmslaprov|5.5}} applies: :(a) '''{{gmslaprov|Required Collateral Value}}''': The aggregate {{gmslaprov|..."
 
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{{gmslaprov|5.4}} Unless "single {{gmslaprov|Loan}} margining" under {{gmslaprov|5.5}} applies:  
{{gmslaprov|5.4}} '''{{gmslaprov|Required Collateral Value}} (aggregated {{gmslaprov|Loan}}s)''': Unless {{gmslaprov|Single Loan margining}} under {{gmslaprov|5.5}} applies:  
:(a) '''{{gmslaprov|Required Collateral Value}}''': The aggregate {{gmslaprov|Market Value}} of {{gmslaprov|Posted Collateral}} in respect of all outstanding {{gmslaprov|Loans}} must equal the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Loaned Securities}} plus applicable {{gmslaprov|Margin}}.
:(a) '''{{gmslaprov|Required Collateral Value}}''': The aggregate {{gmslaprov|Market Value}} of {{gmslaprov|Collateral}} delivered to {{gmslaprov|Lender}} ('''{{gmslaprov|Posted Collateral}}''') for all outstanding {{gmslaprov|Loans}} must equal the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Loaned Securities}} plus the {{gmslaprov|Margin}} ('''{{gmslaprov|Required Collateral Value}}''').
:(b) '''Excess {{gmslaprov|Collateral}}''': if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} plus: <br>
:(b) '''Excess {{gmslaprov|Collateral}}''': if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} (plus unpaid income etc) exceeds the aggregate of the {{gmslaprov|Required Collateral Value}} the {{gmslaprov|Lender}} must deliver to {{gmslaprov|Borrower}} enough {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} to eliminate the excess;
::(i) all unpaid amounts due by the {{gmslaprov|Lender}}; and <br>
:(c) '''{{gmslaprov|Collateral}} Deficiency''': if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} (plus unpaid income etc) falls below the aggregate {{gmslaprov|Required Collateral Value}} the {{gmslaprov|Borrower}} must provide further {{gmslaprov|Collateral}} to {{gmslaprov|Lender}} to eliminate the deficiency.<br>
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Non-Cash Collateral}} <br>
:(d) '''Shorts and Longs''': where a {{gmslaprov|Party}} acts as both {{gmslaprov|Lender}} and {{gmslaprov|Borrower}}, paragraphs {{gmslaprov|5.4}}(b) and {{gmslaprov|5.4}}(c) apply separately to {{gmslaprov|Loans}} where it is a {{gmslaprov|Lender}} and {{gmslaprov|Loans}} where it is a {{gmslaprov|Borrower}}. <br>
:exceeds the aggregate of the {{gmslaprov|Required Collateral Value}} plus:
::(i) all unpaid amounts due by the {{gmslaprov|Borrower}}; and
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on the {{gmslaprov|Equivalent Securities}},<br>
:{{gmslaprov|Lender}} must repay to {{gmslaprov|Borrower}} such {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} as will eliminate the excess;
:(c) '''{{gmslaprov|Collateral}} Deficiency''': if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} plus: <br>
::(i) all unpaid amounts due by the {{gmslaprov|Lender}}; and <br>
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Non-Cash Collateral}} <br>
:falls below the aggregate {{gmslaprov|Required Collateral Value}} plus:
::(i) all unpaid amounts due by the {{gmslaprov|Borrower}}; and
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Equivalent Securities}},<br>
:{{gmslaprov|Borrower}} must provide such further {{gmslaprov|Collateral}} to {{gmslaprov|Lender}} as will eliminate the deficiency;<br>
:(d) '''Shorts and Longs''': where a {{gmslaprov|Party}} acts as both {{gmslaprov|Lender}} and {{gmslaprov|Borrower}} under this {{gmslaprov|Agreement}}, the provisions of paragraphs {{gmslaprov|5.4}}(b) and {{gmslaprov|5.4}}(c) shall apply separately (and without duplication) in respect of {{gmslaprov|Loans}} entered into by that {{gmslaprov|Party}} as {{gmslaprov|Lender}} and {{gmslaprov|Loans}} entered into by that {{gmslaprov|Party}} as {{gmslaprov|Borrower}}.

Latest revision as of 18:53, 24 February 2022

5.4 Required Collateral Value (aggregated Loans): Unless Single Loan margining under 5.5 applies:

(a) Required Collateral Value: The aggregate Market Value of Collateral delivered to Lender (Posted Collateral) for all outstanding Loans must equal the aggregate Market Value of the Loaned Securities plus the Margin (Required Collateral Value).
(b) Excess Collateral: if the aggregate Market Value of the Posted Collateral (plus unpaid income etc) exceeds the aggregate of the Required Collateral Value the Lender must deliver to Borrower enough Equivalent Collateral to eliminate the excess;
(c) Collateral Deficiency: if the aggregate Market Value of the Posted Collateral (plus unpaid income etc) falls below the aggregate Required Collateral Value the Borrower must provide further Collateral to Lender to eliminate the deficiency.
(d) Shorts and Longs: where a Party acts as both Lender and Borrower, paragraphs 5.4(b) and 5.4(c) apply separately to Loans where it is a Lender and Loans where it is a Borrower.
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