Interpretation (Agency Addendum) - GMSLA Provision: Difference between revisions
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A scholar will note that the most of this interpretation section is surplus to requirements, since it merely fingerpost to other parts of the Addendum. Which leaves the vexed question of (b). This is the definition of {{gmslaprov|Net Loan Exposure}}. This is designed to capture the overall exposure as between the Borrower and any ''one'' {{gmslaprov|Principal}} in the {{gmslaprov|Agent Lender}}’s portfolio, across all {{gmslaprov|Loans}} between those two. | A scholar will note that the most of this interpretation section is surplus to requirements, since it merely fingerpost to other parts of the Addendum. Which leaves the vexed question of (b). This is the definition of {{gmslaprov|Net Loan Exposure}}. This is designed to capture the overall exposure as between the Borrower and any ''one'' {{gmslaprov|Principal}} in the {{gmslaprov|Agent Lender}}’s portfolio, across all {{gmslaprov|Loans}} between those two. | ||
{{Nuts|gmsla|Net Loan Exposure}} | |||
Revision as of 13:00, 12 September 2017
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GMSLA Anatomy™
2.1 In this addendum:
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A scholar will note that the most of this interpretation section is surplus to requirements, since it merely fingerpost to other parts of the Addendum. Which leaves the vexed question of (b). This is the definition of Net Loan Exposure. This is designed to capture the overall exposure as between the Borrower and any one Principal in the Agent Lender’s portfolio, across all Loans between those two.
Net Loan Exposure in a Nutshell™ (gmsla edition)
- (b) Net Loan Exposure:
- (i) If the aggregate Market Value of Posted Collateral between the Borrower and any one Principal exceeds the total Required Collateral Value for all Agency Loans between them, Borrower has a Net Loan Exposure to that Principal equal to that excess.
- (ii)If it is less than the Required Collateral Value, the Principal has a Net Loan Exposure to Borrower equal to the shortfall.
- (i) If the aggregate Market Value of Posted Collateral between the Borrower and any one Principal exceeds the total Required Collateral Value for all Agency Loans between them, Borrower has a Net Loan Exposure to that Principal equal to that excess.