Template:GMSLA 2010 5.6: Difference between revisions
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{{gmslaprov|5.6 }} '''{{gmslaprov|Requirements to deliver excess Collateral}}''' <br> | {{gmslaprov|5.6}} '''{{gmslaprov|Requirements to deliver excess Collateral}}''' <br> | ||
Where paragraph {{gmslaprov|5.4}} applies, unless paragraph 1.4 of the Schedule indicates that this paragraph {{gmslaprov|5.6}} does not apply, if a {{gmslaprov|Party}} (the first {{gmslaprov|Party}}) would, but for this paragraph {{gmslaprov|5.6}}, be required under paragraph {{gmslaprov|5.4}} to provide further {{gmslaprov|Collateral}} or deliver {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} in circumstances where the other {{gmslaprov|Party}} (the second {{gmslaprov|Party}}) would, but for this paragraph {{gmslaprov|5.6}}, also be required to or provide {{gmslaprov|Collateral}} or deliver {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} under paragraph {{gmslaprov|5.4}}, then the {{gmslaprov|Market Value}} of the {{gmslaprov|Collateral}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} deliverable by the first {{gmslaprov|Party}} (X) shall be set off against the {{gmslaprov|Market Value}} of the {{gmslaprov|Collateral}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} deliverable by the second {{gmslaprov|Party}} (Y) and the only obligation of the {{gmslaprov|Parties}} under paragraph {{gmslaprov|5.4}} shall be, where X exceeds Y, an obligation of the first {{gmslaprov|Party}}, or where Y exceeds X, an obligation of the second {{gmslaprov|Party}} to repay and/or (as the case may be) deliver {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} or to deliver further {{gmslaprov|Collateral}} having a {{gmslaprov|Market Value}} equal to the difference between X and Y. <br> | Where paragraph {{gmslaprov|5.4}} applies, unless paragraph 1.4 of the Schedule indicates that this paragraph {{gmslaprov|5.6}} does not apply, if a {{gmslaprov|Party}} (the first {{gmslaprov|Party}}) would, but for this paragraph {{gmslaprov|5.6}}, be required under paragraph {{gmslaprov|5.4}} to provide further {{gmslaprov|Collateral}} or deliver {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} in circumstances where the other {{gmslaprov|Party}} (the second {{gmslaprov|Party}}) would, but for this paragraph {{gmslaprov|5.6}}, also be required to or provide {{gmslaprov|Collateral}} or deliver {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} under paragraph {{gmslaprov|5.4}}, then the {{gmslaprov|Market Value}} of the {{gmslaprov|Collateral}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} deliverable by the first {{gmslaprov|Party}} (X) shall be set off against the {{gmslaprov|Market Value}} of the {{gmslaprov|Collateral}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} deliverable by the second {{gmslaprov|Party}} (Y) and the only obligation of the {{gmslaprov|Parties}} under paragraph {{gmslaprov|5.4}} shall be, where X exceeds Y, an obligation of the first {{gmslaprov|Party}}, or where Y exceeds X, an obligation of the second {{gmslaprov|Party}} to repay and/or (as the case may be) deliver {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} or to deliver further {{gmslaprov|Collateral}} having a {{gmslaprov|Market Value}} equal to the difference between X and Y. <br> | ||
Latest revision as of 08:49, 1 September 2017
5.6 Requirements to deliver excess Collateral
Where paragraph 5.4 applies, unless paragraph 1.4 of the Schedule indicates that this paragraph 5.6 does not apply, if a Party (the first Party) would, but for this paragraph 5.6, be required under paragraph 5.4 to provide further Collateral or deliver Equivalent Collateral in circumstances where the other Party (the second Party) would, but for this paragraph 5.6, also be required to or provide Collateral or deliver Equivalent Collateral under paragraph 5.4, then the Market Value of the Collateral or Equivalent Collateral deliverable by the first Party (X) shall be set off against the Market Value of the Collateral or Equivalent Collateral deliverable by the second Party (Y) and the only obligation of the Parties under paragraph 5.4 shall be, where X exceeds Y, an obligation of the first Party, or where Y exceeds X, an obligation of the second Party to repay and/or (as the case may be) deliver Equivalent Collateral or to deliver further Collateral having a Market Value equal to the difference between X and Y.