Borrower’s Warranties - GMSLA Provision: Difference between revisions
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{{gmslaanat|14}} | {{gmslaanat|14}}{{gmsla2000anat|14}}An interesting fact — “interesting” being a relative concept, in this case we are comparing with the fact that “[[and, as the case may be, or]]” appears 33 times in the text of the [[Alternative Investment Fund Management Directive]] — is that a breach of the last of these {{gmslaprov|Borrower’s Warranties}}, {{gmslaprov|14(e)}}, namely that the {{gmslaprov|Borrower}}’s primary purpose is not to exercise voting rights under {{gmslaprov|Loaned Securities}}, is not an {{gmslaprov|Event of Default}}, whereas the breach of the other {{gmslaprov|Borrower’s Warranties}} will be. | ||
{{gmsla2000anat|14}} | |||
An interesting fact — “interesting” being a relative concept, in this case we are comparing with the fact that “[[and, as the case may be, or]]” appears 33 times in the text of the [[Alternative Investment Fund Management Directive]] — is that a breach of the last of these {{gmslaprov|Borrower’s Warranties}}, {{gmslaprov|14(e)}}, namely that the {{gmslaprov|Borrower}}’s primary purpose is not to exercise voting rights under {{gmslaprov|Loaned Securities}}, is not an {{gmslaprov|Event of Default}}, whereas the breach of the other {{gmslaprov|Borrower’s Warranties}} will be. | |||
Our best guess is that because this is a silly warranty in the first place, and it is nigh-on impossible to prove that it was false, unless the {{gmslaprov|Borrower}} is stupid enough to admit it. | Our best guess is that because this is a silly warranty in the first place, and it is nigh-on impossible to prove that it was false, unless the {{gmslaprov|Borrower}} is stupid enough to admit it. | ||
Revision as of 16:26, 1 August 2019
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An interesting fact — “interesting” being a relative concept, in this case we are comparing with the fact that “and, as the case may be, or” appears 33 times in the text of the Alternative Investment Fund Management Directive — is that a breach of the last of these Borrower’s Warranties, 14(e), namely that the Borrower’s primary purpose is not to exercise voting rights under Loaned Securities, is not an Event of Default, whereas the breach of the other Borrower’s Warranties will be.
Our best guess is that because this is a silly warranty in the first place, and it is nigh-on impossible to prove that it was false, unless the Borrower is stupid enough to admit it.