Template:Nutshell Pledge GMSLA 8: Difference between revisions
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{{pgmslaprov|8}}. '''{{pgmslaprov|Delivery of Equivalent Securities}}''' <br> | {{pgmslaprov|8}}. '''{{pgmslaprov|Delivery of Equivalent Securities}}''' <br> | ||
{{pgmslaprov|8.1}} | {{pgmslaprov|8.1}} '''{{pgmslaprov|Lender’s right to terminate a Loan}}''': Unless it is a [[Term stock loan|term Loan]], {{pgmslaprov|Lender}} may terminate a {{pgmslaprov|Loan}} and call for {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} by giving notice on any {{pgmslaprov|Business Day}}. {{pgmslaprov|Lender}} must allow the {{pgmslaprov|Borrower}} at least the [[standard settlement cycle]] to return {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}}. <br> | ||
{{pgmslaprov|8.2}} '''{{pgmslaprov|Borrower’s right to terminate a Loan}}''': The {{pgmslaprov|Borrower}} may terminate a {{pgmslaprov|Loan}} at any time and deliver outstanding {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} to {{pgmslaprov|Lender}} per its instructions. The {{pgmslaprov|Lender}} must accept such delivery. <br> | {{pgmslaprov|8.2}} '''{{pgmslaprov|Borrower’s right to terminate a Loan}}''': The {{pgmslaprov|Borrower}} may terminate a {{pgmslaprov|Loan}} at any time and deliver outstanding {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} to {{pgmslaprov|Lender}} per its instructions. The {{pgmslaprov|Lender}} must accept such delivery. <br> | ||
{{pgmslaprov|8.3}} '''{{pgmslaprov|Non-Defaulting Party’s right to terminate all Loans}}''': If any of the circumstances giving rise to the {{pgmslaprov|Events of Default}} in paragraphs {{pgmslaprov|10.1}}(a) to (j) exist but the actual {{pgmslaprov|Event of Default}} hasn’t been triggered, and notwithstanding the scheduled termination dates of the {{pgmslaprov|Loan}}s, the {{pgmslaprov|Non-Defaulting Party}} may on any {{pgmslaprov|Business Day}} terminate all {{pgmslaprov|Loan}}s by written notice to {{pgmslaprov|Defaulting Party}} whereupon | {{pgmslaprov|8.3}} '''{{pgmslaprov|Non-Defaulting Party’s right to terminate all Loans}}''': If any of the circumstances giving rise to the {{pgmslaprov|Events of Default}} in paragraphs {{pgmslaprov|10.1}}(a) to (j) exist but the actual {{pgmslaprov|Event of Default}} hasn’t been triggered, and notwithstanding the scheduled termination dates of the {{pgmslaprov|Loan}}s, the {{pgmslaprov|Non-Defaulting Party}} may on any {{pgmslaprov|Business Day}} terminate all {{pgmslaprov|Loan}}s by written notice to {{pgmslaprov|Defaulting Party}} whereupon | ||
Revision as of 08:26, 8 July 2020
8. Delivery of Equivalent Securities
8.1 Lender’s right to terminate a Loan: Unless it is a term Loan, Lender may terminate a Loan and call for Equivalent Securities by giving notice on any Business Day. Lender must allow the Borrower at least the standard settlement cycle to return Equivalent Securities.
8.2 Borrower’s right to terminate a Loan: The Borrower may terminate a Loan at any time and deliver outstanding Equivalent Securities to Lender per its instructions. The Lender must accept such delivery.
8.3 Non-Defaulting Party’s right to terminate all Loans: If any of the circumstances giving rise to the Events of Default in paragraphs 10.1(a) to (j) exist but the actual Event of Default hasn’t been triggered, and notwithstanding the scheduled termination dates of the Loans, the Non-Defaulting Party may on any Business Day terminate all Loans by written notice to Defaulting Party whereupon
- (i) each such Loan will terminate at the expiry of the standard settlement time following the Non-Defaulting Party's notice and Borrower will, in respect of each such Loan, by that date deliver Equivalent Securities to Lender per the Lender's instruction and
- (ii) any accrued lending fees under paragraph 7 will be payable immediately. For the avoidance of doubt, if Borrower fails to deliver Equivalent Securities Lender may exercise its mini close-out rights under paragraph 9.1.
8.4 Delivery of Equivalent Securities on termination of a Loan: Upon termination of a Loan for any reason under this Agreement, Borrower must deliver Equivalent Securities to Lender in accordance with this Agreement and the Loan and any requirement for a Borrower to deal with Loaned Securities will be taken as a reference to Equivalent Securities.