Manufactured payments in respect of Loaned Securities - GMSLA Provision: Difference between revisions
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{{ | {{Manual|MSG|2010|6.2|Clause|6.1|medium}}''For the equivalent provision under the {{2000gmsla}} see Paragraph [[6 - 2000 GMSLA Provision]].''<br> | ||
In other words the {{gmslaprov|Borrower}} pays what the {{gmslaprov|Lender}} would have received net, by reference to the Lender's own situation. This means that the {{gmslaprov|Lender}} doesn't need to worry about different rates of tax or withholding applying to the {{gmslaprov|Borrower}}. The {{gmslaprov|Borrower}}, being the person who wanted to borrow the securities, takes the risk of untoward taxes related to its own position (as opposed to the {{gmslaprov|Lender}}’s position) — if the tax is one the {{gmslaprov|Lender}} would have suffered anyway, the {{gmslaprov|Borrower}} doesn't have to account for this. | In other words the {{gmslaprov|Borrower}} pays what the {{gmslaprov|Lender}} would have received net, by reference to the Lender's own situation. This means that the {{gmslaprov|Lender}} doesn't need to worry about different rates of tax or withholding applying to the {{gmslaprov|Borrower}}. The {{gmslaprov|Borrower}}, being the person who wanted to borrow the securities, takes the risk of untoward taxes related to its own position (as opposed to the {{gmslaprov|Lender}}’s position) — if the tax is one the {{gmslaprov|Lender}} would have suffered anyway, the {{gmslaprov|Borrower}} doesn't have to account for this. |