Template:Nutshell Pledge GMSLA 11: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) m Amwelladmin moved page Template:Nutshell Pledge GMSLA to Template:Nutshell Pledge GMSLA 11 |
Amwelladmin (talk | contribs) No edit summary |
||
Line 1: | Line 1: | ||
{{pgmslaprov|11}} '''{{pgmslaprov|Consequences of an Event of Default}}''' <br> | {{pgmslaprov|11}} '''{{pgmslaprov|Consequences of an Event of Default}}''' <br> | ||
{{pgmslaprov|11.1}} If an {{pgmslaprov|Event of Default}} | {{pgmslaprov|11.1}} If an {{pgmslaprov|Event of Default}} happens to either Party: <br> | ||
{{pgmslaprov|11.2}} '''[[Acceleration]]''': {{pgmslaprov|Borrower}}’s obligations | {{pgmslaprov|11.2}} '''[[Acceleration]]''': {{pgmslaprov|Borrower}}’s obligations will be accelerated as at the time of the {{pgmslaprov|Event of Default}} (the '''{{pgmslaprov|Termination Date}}''') as follows:<br> | ||
:{{pgmslaprov|11.2(a)}} The {{pgmslaprov|Non-Defaulting Party}} will determine the {{pgmslaprov|Default Market Value}} of the {{pgmslaprov|Borrower}}’s delivery and payment obligations | :{{pgmslaprov|11.2(a)}} The {{pgmslaprov|Non-Defaulting Party}} will determine the {{pgmslaprov|Default Market Value}} of the {{pgmslaprov|Borrower}}’s delivery and payment obligations under paragraph {{pgmslaprov|11.4}} as at the {{pgmslaprov|Termination Date}}. | ||
:{{pgmslaprov|11.2(b)}} Using those | :{{pgmslaprov|11.2(b)}} Using those values, [the {{pgmslaprov|Non-Defaulting Party}} will determine ''and notify'']<ref>Well, we ''assume'' it will be the [[Non-Defaulting Party - Pledge GMSLA Provision|NDP]]: the {{pgmsla}} rather brilliantly puts it into an unattributed [[passive]], as if God is going to to it, or it will magically happen by itself. Go, {{islacds}}.</ref>what each Party owes as at the {{pgmslaprov|Termination Date}}, converting amounts into the {{pgmslaprov|Base Currency}} at the {{pgmslaprov|Spot Rate}} where necessary, and will set those sums off against each other. The Party owing the greater amount must pay the difference on the {{pgmslaprov|Business Day}} after notification. | ||
{{pgmslaprov|11.3}} '''Determining the {{pgmslaprov|Default Market Value}}''': The {{pgmslaprov|Non-Defaulting Party}} will determine the '''{{pgmslaprov|Default Market Value}}''' of any {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} according to paragraphs {{pgmslaprov|11.4}} to {{pgmslaprov|11.6}}, where | {{pgmslaprov|11.3}} '''Determining the {{pgmslaprov|Default Market Value}}''': The {{pgmslaprov|Non-Defaulting Party}} will determine the '''{{pgmslaprov|Default Market Value}}''' of any {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} according to paragraphs {{pgmslaprov|11.4}} to {{pgmslaprov|11.6}}, where: | ||
:'''{{pgmslaprov|Appropriate Market}}''' is the most appropriate market for {{pgmslaprov|Securities}} of that description, as determined by the {{pgmslaprov|Non-Defaulting Party}}; | |||
:'''{{pgmslaprov|Default Valuation Time}}''' means the {{pgmslaprov|Close of Business}} in the {{pgmslaprov|Appropriate Market}} on the fifth dealing day after the {{pgmslaprov|Termination Date}}; | |||
::'''{{pgmslaprov|Net Value}}''' of any securities means the {{pgmslaprov|Non-Defaulting Party}}’s reasonable opinion of their fair {{pgmslaprov|Market Value}} less (where {{pgmslaprov|Lender}} is the {{pgmslaprov|Defaulting Party}}) or plus (where {{pgmslaprov|Borrower}} is the {{pgmslaprov|Defaulting Party}}), all reasonable costs of any transaction needed under paragraph {{pgmslaprov|11.4}} or {{pgmslaprov|11.5}} ('''{{pgmslaprov|Transaction Costs}}''').<br> | |||
{{pgmslaprov|11.4}} '''Transactions and quotes''': If, between the {{pgmslaprov|Termination Date}} and the {{pgmslaprov|Default Valuation Time}}: | {{pgmslaprov|11.4}} '''Transactions and quotes''': If, between the {{pgmslaprov|Termination Date}} and the {{pgmslaprov|Default Valuation Time}}: | ||
:{{pgmslaprov|11.4(a)}} as {{pgmslaprov|Non-Defaulting Party}}, the {{pgmslaprov|Borrower}} has sold or the {{pgmslaprov|Lender}} has purchased, [[fungible]] {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} it may treat as the {{pgmslaprov|Default Market Value}}: | :{{pgmslaprov|11.4(a)}} as {{pgmslaprov|Non-Defaulting Party}}, the {{pgmslaprov|Borrower}} has sold or the {{pgmslaprov|Lender}} has purchased, [[fungible]] {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} it may treat as the {{pgmslaprov|Default Market Value}}: |