Default interest - GMRA Provision: Difference between revisions
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{{gmraanat|10(f)}}Compare with Clause {{gmraprov|4(f)}}, which is the standard interest payable on the cash leg of a {{gmraprov|Transaction}}. This is default interest, where things have gone pete tong and one side has referred matters to its learned friends. In theory in scope for [[LIBOR]] remediation — cue obligatory reference to the [[dramatic look gopher]] — but is the world going to go any further towards Hell in a hand-basket if there is confusion about the interest basis on which you can recover legal fees? Respectfully — given that, on the theory of the game your Counterparty is a smoking ruin and so you are ''already'' in hell, in a hand-basket, the [[JC]] respectfuilly submits it will not. | {{gmraanat|10(f)}}Compare with Clause {{gmraprov|4(f)}}, which is the standard interest payable on the cash leg of a {{gmraprov|Transaction}}. This is default interest, where things have gone pete tong and one side has referred matters to its learned friends. In theory in scope for [[LIBOR]] remediation — cue obligatory reference to the [[dramatic look gopher]] — but is the world going to go any further towards Hell in a hand-basket if there is confusion about the interest basis on which you can recover legal fees? Respectfully — given that, on the theory of the game your Counterparty is a smoking ruin and so you are ''already'' in hell, in a hand-basket, the [[JC]] respectfuilly submits it will not. | ||
===GMSLA equivalent=== | |||
The corresponding {{gmsla}} provision (clause {{gmslaprov|11.7}}) is similar in effect, and in its potential [[LIBOR]] impact. | |||
===[[DLG]]=== | |||
And now: A quick [[dramatic look gopher]]. | And now: A quick [[dramatic look gopher]]. | ||
[[File:Dramatic Chipmunk.png|150px|frameless|center]] | [[File:Dramatic Chipmunk.png|150px|frameless|center]] | ||
Revision as of 12:21, 13 November 2019
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GMRA Anatomy™
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Compare with Clause 4(f), which is the standard interest payable on the cash leg of a Transaction. This is default interest, where things have gone pete tong and one side has referred matters to its learned friends. In theory in scope for LIBOR remediation — cue obligatory reference to the dramatic look gopher — but is the world going to go any further towards Hell in a hand-basket if there is confusion about the interest basis on which you can recover legal fees? Respectfully — given that, on the theory of the game your Counterparty is a smoking ruin and so you are already in hell, in a hand-basket, the JC respectfuilly submits it will not.
GMSLA equivalent
The corresponding 2010 GMSLA provision (clause 11.7) is similar in effect, and in its potential LIBOR impact.
DLG
And now: A quick dramatic look gopher.
See also
- Clause 4(f) — Interest on Cash Margin
- LIBOR