Existing Loans - GMSLA Provision: Difference between revisions
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A simple clean up provision to inherit all existing {{gmslaprov|Loan}}s under {{osla}}s and older {{gmsla}}s. | A simple clean up provision to inherit all existing {{gmslaprov|Loan}}s under {{osla}}s and older {{gmsla}}s. | ||
The more pedantic will provide in {{gmslaprov|Schedule 11}} that those legacy [[stock lending agreement]]s are all deemed terminated, and the super cautious might add that the extant loans are governed by the new agreement as a [[single agreement]] — but ''legally'' this doesn’t go much further than the text of para {{gmslaprov|27.4}}. If your [[netting]] engine is thrown for a loop by the existence of two live [[Master netting agreement|master agreements]] between the same counterparties (hey — it can happen) then formally terminating the superseded one for good order is a sensible step — but this is really an operational point more than a legal one. | The more pedantic will provide in {{gmslaprov|Schedule 11}} that those legacy [[stock lending agreement]]s are all deemed terminated, and the super cautious might add, by way of [[For the avoidance of doubt|wholly unnecessary clarification]], that the extant loans are governed by the new agreement as a [[single agreement]] — but ''legally'' this doesn’t go much further than the text of para {{gmslaprov|27.4}}. If your [[netting]] engine is thrown for a loop by the existence of two live [[Master netting agreement|master agreements]] between the same counterparties (hey — it can happen) then formally terminating the superseded one for good order is a sensible step — but this is really an operational point more than a legal one. | ||
Note also that, unlike an {{isdama}}, a [[GMSLA]] ''can'' be terminated as a separate thing conceptual item, apart from all outstanding {{gmslaprov|transaction}}s under it. | Note also that, unlike an {{isdama}}, a [[GMSLA]] ''can'' be terminated as a separate thing conceptual item, apart from all outstanding {{gmslaprov|transaction}}s under it. | ||
Revision as of 08:32, 14 June 2019
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GMSLA Anatomy™
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A simple clean up provision to inherit all existing Loans under 1995 OSLAs and older 2010 GMSLAs.
The more pedantic will provide in Schedule 11 that those legacy stock lending agreements are all deemed terminated, and the super cautious might add, by way of wholly unnecessary clarification, that the extant loans are governed by the new agreement as a single agreement — but legally this doesn’t go much further than the text of para 27.4. If your netting engine is thrown for a loop by the existence of two live master agreements between the same counterparties (hey — it can happen) then formally terminating the superseded one for good order is a sensible step — but this is really an operational point more than a legal one.
Note also that, unlike an ISDA Master Agreement, a GMSLA can be terminated as a separate thing conceptual item, apart from all outstanding transactions under it.