Manufactured Payments - 2000 GMSLA Provision

2000 GMSLA Anatomy™ →Go uptown In a Nutshell™ Clause 6.1: 6.1 Manufactured Payments Where Income is paid on any Loaned Securities or Collateral the Borrower or Lender (as appropriate) must manufacture an equivalent amount of Income on the relevant payment date (the Relevant Payment Date) that the other person would have been entitled to receive from the issuer on the Income Payment Date had it not delivered the Loaned Securities or Collateral under a Loan. view template 2000 GMSLA full text of Clause 6.1: 6.1 Manufactured Payments Where Income is paid in relation to any Loaned Securities or Collateral (other than Cash Collateral) on or by reference to an Income Payment Date Borrower, in the case of Loaned Securities, and Lender, in the case of Collateral, shall, on the date of the payment of such Income, or on such other date as the Partjes may from time to time agree, (the Relevant Payment Date) pay and deliver a sum of money or property equivalent to the type and amount of such Income that, in the case of Loaned Securities, Lender would have been entitled to receive had such Securities not been loaned to Borrower and had been retained by Lender on the Income Payment Date, and, in the case of Collateral, Borrower would have been entitled to receive had such Collateral not been provided to Lender and had been retained by Borrower on the Income Payment Date unless a different sum is agreed between the Parties. view template 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 Navigation (2000 GMSLA): 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | Schedule | Agency Annex | Addendum for Pooled Principal Agency Loans Stock Lending Anatomies: GMSLA Anatomy | Pledge GMSLA Anatomy | 2000 GMSLA Anatomy | OSLA Anatomy Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

What is the significance of the wording “... would have been entitled to receive...”? What if the Issuer is obliged to make the payment, but doesn’t? Does the Borrower of such a stock guarantee the Issuer’s performance? It is hard to see how this is intended, but that is one way you could read the wording.

In the 2010 2010 GMSLA it the wording is modified (Clauses 6.2 and 6.3) to provide “... that would be received ...”