Template:M comp disc Pledge GMSLA 9: Difference between revisions
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Amwelladmin (talk | contribs) Created page with "Counterintuitively, this mini-close out provision in the {{pgmsla}} is very similar to the one in the {{gmsla}}. There is the notable absence of the clause about failure t..." |
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Counterintuitively, this [[mini-close out]] provision in the {{pgmsla}} is very similar to the one in the {{gmsla}}. There is the notable absence of the clause about failure to return {{gmslaprov|Collateral}} — but you can’t really blame {{islacds}} for that, seeing as the {{gmslaprov|Borrower}} never delivers the {{gmslaprov|Collateral}} to the {{gmslaprov|Lender}} in the first place (it’s a [[pledge]] — see?). But otherwise it works in the same way. | [[9 - Pledge GMSLA Provision|Counterintuitively]], this [[mini-close out]] provision in the {{pgmsla}} is very similar to the one in the {{gmsla}}. There is the notable absence of the clause about failure to return {{gmslaprov|Collateral}} — but you can’t really blame {{islacds}} for that, seeing as the {{gmslaprov|Borrower}} never delivers the {{gmslaprov|Collateral}} to the {{gmslaprov|Lender}} in the first place (it’s a [[pledge]] — see?). But otherwise it works in the same way. | ||
This is because it only really applies to the {{gmslaprov|Borrower}}, and — assuming the {{gmslaprov|Borrower}} has not gone ''[[tette in alto]]'', but is merely struggling to source {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} to return because the market’s a bit dickey — you would not expect the {{gmslaprov|Lender}} to enforce on the {{gmslaprov|Collateral}}. | This is because it only really applies to the {{gmslaprov|Borrower}}, and — assuming the {{gmslaprov|Borrower}} has not gone ''[[tette in alto]]'', but is merely struggling to source {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} to return because the market’s a bit dickey — you would not expect the {{gmslaprov|Lender}} to enforce on the {{gmslaprov|Collateral}}. | ||
Latest revision as of 15:13, 22 April 2021
Counterintuitively, this mini-close out provision in the 2018 Pledge GMSLA is very similar to the one in the 2010 GMSLA. There is the notable absence of the clause about failure to return Collateral — but you can’t really blame ISLA’s crack drafting squad™ for that, seeing as the Borrower never delivers the Collateral to the Lender in the first place (it’s a pledge — see?). But otherwise it works in the same way.
This is because it only really applies to the Borrower, and — assuming the Borrower has not gone tette in alto, but is merely struggling to source Equivalent Securities to return because the market’s a bit dickey — you would not expect the Lender to enforce on the Collateral.