Default interest - GMRA Provision: Difference between revisions
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{{gmraanat|10(f)}}Compare with Clause {{gmraprov|4(f)}}, which is the standard interest payable on the cash leg of a {{gmraprov|Transaction}}. This is default interest, where things have gone | {{gmraanat|10(f)}}Compare with Clause {{gmraprov|4(f)}}, which is the standard interest payable on the cash leg of a {{gmraprov|Transaction}}. | ||
===GMSLA equivalent=== | |||
This is ''default'' [[interest]], where things have gone Pete Tong for one party and the other has referred matters to its learned friends. In theory, this provision references the dreaded [[LIBOR]] — cue obligatory reference to the [[dramatic look gopher]] — and is thus in scope for [[LIBOR]] remediation, but in practice the question is this: | |||
:''Is the world going to go any '''further''' towards hell in a hand-basket if there is confusion about the [[interest]] rate which you charge on the accrual of your legal fees?'' | |||
Respectfully — given that, on the theory of the game your Counterparty is already smoking ruin; thus, you are ''already'' in hell, in a hand-basket — the [[JC]] respectfully submits it will not. | |||
===[[GMSLA]] equivalent=== | |||
The corresponding {{gmsla}} provision (clause {{gmslaprov|11.7}}) is similar in effect, and in its potential [[LIBOR]] impact. | The corresponding {{gmsla}} provision (clause {{gmslaprov|11.7}}) is similar in effect, and in its potential [[LIBOR]] impact. | ||
===[[DLG]]=== | ===[[DLG]]=== | ||