Failure to pay Collateral - GMSLA Provision

Commentary

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10.1(a) in a Nutshell™ _{(GMSLA edition)}

10.1(a) Failure to Deliver: The failure, when required under Paragraph 5, of:

(i) either party to pay or repay Cash Collateral; or

(ii) the Borrower to deliver any other Collateral to the Lender;

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GMSLA Equivalence

Techy linguistic aside: Now here’s a funny thing. In the 2000 GMSLA, there were four defined terms relating to the Securities and Collateral that pass between the parties to a stock loan, all of them nouns:

• Securities
• Collateral
• Equivalent Securities
• Equivalent Collateral

But under the 2010 GMSLA, there are just three; two shorter nouns and an adjective:

• Securities
• Collateral
• Equivalent

This means you can move from the utterly tiring “Securities, Collateral, Equivalent Securities or Equivalent Collateral” which is fire-hosed throughout the 2000 GMSLA to the less offensive “Securities, Collateral or their Equivalents” in the 2010 GMSLA.

See Also

update to anat|gmsla

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Index: Click ᐅ to expand:

GMSLA

Pledge GMSLA

OSLA

2010 GMSLA: Full wikitext · Nutshell wikitext | GMLSA legal code | GMSLA Netting
Pledge GMSLA: Hard copy (ISLA) · Full wikitext · Nutshell wikitext |
1995 OSLA: OSLA wikitext | OSLA in a nutshell | GMSLA/PGMSLA/OSLA clause comparison table
From Our Friends On The Internet: Guide to equity finance | ISLA’s guide to securities lending for regulators and policy makers