Template:Nutshell 2000 GMSLA 5.5: Difference between revisions
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Amwelladmin (talk | contribs) Created page with "{{gmsla2000prov|5.5}} '''{{gmsla2000prov|Marking to Market of Collateral during the currency of a Loan on a Loan by Loan basis}}'''<br> If the parties agree in {{gmslaprov|1.3..." |
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{{gmsla2000prov|5.5}} '''{{gmsla2000prov|Marking to Market of Collateral during the currency of a Loan on a Loan by Loan basis}}'''<br> | {{gmsla2000prov|5.5}} '''{{gmsla2000prov|Marking to Market of Collateral during the currency of a Loan on a Loan by Loan basis}}'''<br> | ||
Where the parties agree in {{gmslaprov|1.3}} of the Schedule that they will mark {{gmslaprov|Collateral}} to market {{gmslaprov|Loan}}-by-{{gmslaprov|Loan}} under this paragraph (and not on an aggregated basis under paragraph {{gmsla2000prov|5.4}}) the {{gmsla2000prov|Posted Collateral}} for any {{gmsla2000prov|Loan}} must always bear same proportion to the {{gmsla2000prov|Market Value}} of the {{gmsla2000prov|Loaned Securities}} as it did when the {{gmsla2000prov|Loan}} started. Therefore: | |||
:(i) the {{gmsla2000prov|Market Value}} of the required {{gmsla2000prov|Posted Collateral}} during the {{gmsla2000prov|Loan}} continues will equal the {{gmsla2000prov|Required Collateral Value}}; | :(i) the {{gmsla2000prov|Market Value}} of the required {{gmsla2000prov|Posted Collateral}} during the {{gmsla2000prov|Loan}} continues will equal the {{gmsla2000prov|Required Collateral Value}}; | ||
:(ii) if on any {{gmsla2000prov|Business Day}} the {{gmsla2000prov|Market Value}} of any such {{gmsla2000prov|Posted Collateral}} ''exceeds'' the {{gmsla2000prov|Required Collateral Value}} for the same {{gmsla2000prov|Loan}}, {{gmsla2000prov|Lender}} must return to {{gmsla2000prov|Borrower}} enough {{gmsla2000prov|Equivalent}} {{gmsla2000prov|Collateral}} eliminate the excess on demand; and | :(ii) if on any {{gmsla2000prov|Business Day}} the {{gmsla2000prov|Market Value}} of any such {{gmsla2000prov|Posted Collateral}} ''exceeds'' the {{gmsla2000prov|Required Collateral Value}} for the same {{gmsla2000prov|Loan}}, {{gmsla2000prov|Lender}} must return to {{gmsla2000prov|Borrower}} enough {{gmsla2000prov|Equivalent}} {{gmsla2000prov|Collateral}} eliminate the excess on demand; and | ||
:(iii} if on any {{gmsla2000prov|Business Day}} the {{gmsla2000prov|Market Value}} of the {{gmsla2000prov|Posted Collateral}} falls below the {{gmsla2000prov|Required Collateral Value}}, {{gmsla2000prov|Borrower}} must provide further {{gmsla2000prov|Collateral}} to {{gmsla2000prov|Lender}} to eliminate the deficiency, on demand. | :(iii} if on any {{gmsla2000prov|Business Day}} the {{gmsla2000prov|Market Value}} of the {{gmsla2000prov|Posted Collateral}} falls below the {{gmsla2000prov|Required Collateral Value}}, {{gmsla2000prov|Borrower}} must provide further {{gmsla2000prov|Collateral}} to {{gmsla2000prov|Lender}} to eliminate the deficiency, on demand. | ||
Revision as of 13:04, 10 March 2022
5.5 Marking to Market of Collateral during the currency of a Loan on a Loan by Loan basis
Where the parties agree in 1.3 of the Schedule that they will mark Collateral to market Loan-by-Loan under this paragraph (and not on an aggregated basis under paragraph 5.4) the Posted Collateral for any Loan must always bear same proportion to the Market Value of the Loaned Securities as it did when the Loan started. Therefore:
- (i) the Market Value of the required Posted Collateral during the Loan continues will equal the Required Collateral Value;
- (ii) if on any Business Day the Market Value of any such Posted Collateral exceeds the Required Collateral Value for the same Loan, Lender must return to Borrower enough Equivalent Collateral eliminate the excess on demand; and
- (iii} if on any Business Day the Market Value of the Posted Collateral falls below the Required Collateral Value, Borrower must provide further Collateral to Lender to eliminate the deficiency, on demand.