Template:Nutshell GMSLA Interpretation (Agency Addendum)

2. Interpretation (Agency Addendum)
2.1 In this addendum:

(a) Collateral Transfer is defined in paragraph 5.1 below;

(b)

(b) Net Loan Exposure:

(i) If the aggregate Market Value of Posted Collateral between the Borrower and any one Principal exceeds the total Required Collateral Value for all Agency Loans between them, Borrower has a Net Loan Exposure to that Principal equal to that excess.

(ii)If it is less than the Required Collateral Value, the Principal has a Net Loan Exposure to Borrower equal to the shortfall.

(c) Pooled Principal is defined in paragraph 6(a) below; and

(d) Pooled Loan is defined in paragraph 6(a) below.