9 - GMSLA Provision: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) Created page with "{{gmslaprov|9}}. {{gmslaprov|Failure to Deliver}} <BR> :{{gmslaprov|9.1}} {{gmslaprov|Borrower’s failure to deliver Equivalent Securities}} <br> :If {{gmslaprov|Borrower}} f..." |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{gmslaprov|9}}. {{gmslaprov|Failure to Deliver}} <BR> | {{gmslaprov|9}}. {{gmslaprov|Failure to Deliver}} <BR> | ||
:{{gmslaprov|9.1}} {{gmslaprov|Borrower’s failure to deliver Equivalent Securities}} <br> | :{{gmslaprov|9.1}} '''{{gmslaprov|Borrower’s failure to deliver Equivalent Securities}}''' <br> | ||
:If {{gmslaprov|Borrower}} fails to deliver {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} in accordance with paragraph {{gmslaprov|8.3}} {{gmslaprov|Lender}} may: <br> | ::If {{gmslaprov|Borrower}} fails to deliver {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} in accordance with paragraph {{gmslaprov|8.3}} {{gmslaprov|Lender}} may: <br> | ||
::(a) elect to continue the {{gmslaprov|Loan}} (which, for the avoidance of doubt, shall continue to be taken into account for the purposes of paragraph {{gmslaprov|5.4}} or {{gmslaprov|5.5}} as applicable); or <br> | ::(a) elect to continue the {{gmslaprov|Loan}} (which, for the avoidance of doubt, shall continue to be taken into account for the purposes of paragraph {{gmslaprov|5.4}} or {{gmslaprov|5.5}} as applicable); or <br> | ||
::(b) at any time while such failure continues, by written notice to {{gmslaprov|Borrower}} declare that that {{gmslaprov|Loan}} (but only that {{gmslaprov|Loan}}) shall be terminated immediately in accordance with paragraph {{gmslaprov|11.2}} as if (i) an {{gmslaprov|Event of Default}} had occurred in relation to the {{gmslaprov|Borrower}}, (ii) references to the {{gmslaprov|Termination Date}} were to the date on which notice was given under this sub paragraph, and (iii) the {{gmslaprov|Loan}} were the only {{gmslaprov|Loan}} outstanding. For the avoidance of doubt, any such failure shall not constitute an {{gmslaprov|Event of Default}} (including under paragraph {{gmslaprov|10.1(i)}}) unless the {{gmslaprov|Parties}} otherwise agree. <br> | ::(b) at any time while such failure continues, by written notice to {{gmslaprov|Borrower}} declare that that {{gmslaprov|Loan}} (but only that {{gmslaprov|Loan}}) shall be terminated immediately in accordance with paragraph {{gmslaprov|11.2}} as if (i) an {{gmslaprov|Event of Default}} had occurred in relation to the {{gmslaprov|Borrower}}, (ii) references to the {{gmslaprov|Termination Date}} were to the date on which notice was given under this sub paragraph, and (iii) the {{gmslaprov|Loan}} were the only {{gmslaprov|Loan}} outstanding. For the avoidance of doubt, any such failure shall not constitute an {{gmslaprov|Event of Default}} (including under paragraph {{gmslaprov|10.1(i)}}) unless the {{gmslaprov|Parties}} otherwise agree. <br> | ||
:{{gmslaprov|9.2}} {{gmslaprov|Lender’s failure to deliver Equivalent Collateral}} <br> | :{{gmslaprov|9.2}} '''{{gmslaprov|Lender’s failure to deliver Equivalent Collateral}}''' <br> | ||
:If {{gmslaprov|Lender}} fails to deliver {{gmslaprov|Equivalent}} {{gmslaprov|{{gmslaprov|Collateral}}}} comprising {{gmslaprov|Non Cash Collateral}} in accordance with paragraph {{gmslaprov|8.4}} or {{gmslaprov|8.5}}, {{gmslaprov|Borrower}} may: <br> | ::If {{gmslaprov|Lender}} fails to deliver {{gmslaprov|Equivalent}} {{gmslaprov|{{gmslaprov|Collateral}}}} comprising {{gmslaprov|Non Cash Collateral}} in accordance with paragraph {{gmslaprov|8.4}} or {{gmslaprov|8.5}}, {{gmslaprov|Borrower}} may: <br> | ||
::(a) elect to continue the {{gmslaprov|Loan}} (which, for the avoidance of doubt, shall continue to be taken into account for the purposes of paragraph {{gmslaprov|5.4}} or {{gmslaprov|5.5}} as applicable); or <br> | ::(a) elect to continue the {{gmslaprov|Loan}} (which, for the avoidance of doubt, shall continue to be taken into account for the purposes of paragraph {{gmslaprov|5.4}} or {{gmslaprov|5.5}} as applicable); or <br> | ||
::(b) at any time while such failure continues, by written notice to {{gmslaprov|Lender}} declare that that {{gmslaprov|Loan}} (but only that {{gmslaprov|Loan}}) shall be terminated immediately in accordance with paragraph {{gmslaprov|11.2}} as if (i) an {{gmslaprov|Event of Default}} had occurred in relation to the {{gmslaprov|Lender}}, (ii) references to the {{gmslaprov|Termination Date}} were to the date on which notice was given under this sub paragraph, and (iii) the {{gmslaprov|Loan}} were the only {{gmslaprov|Loan}} outstanding. For the avoidance of doubt, any such failure shall not constitute an {{gmslaprov|Event of Default}} (including under paragraph {{gmslaprov|10.1(i)}}) unless the {{gmslaprov|Parties}} otherwise agree. <br> | ::(b) at any time while such failure continues, by written notice to {{gmslaprov|Lender}} declare that that {{gmslaprov|Loan}} (but only that {{gmslaprov|Loan}}) shall be terminated immediately in accordance with paragraph {{gmslaprov|11.2}} as if (i) an {{gmslaprov|Event of Default}} had occurred in relation to the {{gmslaprov|Lender}}, (ii) references to the {{gmslaprov|Termination Date}} were to the date on which notice was given under this sub paragraph, and (iii) the {{gmslaprov|Loan}} were the only {{gmslaprov|Loan}} outstanding. For the avoidance of doubt, any such failure shall not constitute an {{gmslaprov|Event of Default}} (including under paragraph {{gmslaprov|10.1(i)}}) unless the {{gmslaprov|Parties}} otherwise agree. <br> | ||
:{{gmslaprov|9.3}} '''{{gmslaprov|Failure by either Party to deliver}}''' <br> | :{{gmslaprov|9.3}} '''{{gmslaprov|Failure by either Party to deliver}}''' <br> | ||
:Where a {{gmslaprov|Party}} (the {{gmslaprov|Transferor}}) fails to deliver {{gmslaprov|Equivalent}} Securities or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} by the time required under this Agreement or within such other period as may be agreed between the {{gmslaprov|Transferor}} and the other {{gmslaprov|Party}} (the {{gmslaprov|Transferee}}) and the {{gmslaprov|Transferee}}: <br> | ::Where a {{gmslaprov|Party}} (the {{gmslaprov|Transferor}}) fails to deliver {{gmslaprov|Equivalent}} Securities or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} by the time required under this Agreement or within such other period as may be agreed between the {{gmslaprov|Transferor}} and the other {{gmslaprov|Party}} (the {{gmslaprov|Transferee}}) and the {{gmslaprov|Transferee}}: <br> | ||
::(a) incurs interest, overdraft or similar costs and expenses; or <br> | ::(a) incurs interest, overdraft or similar costs and expenses; or <br> | ||
::(b) incurs costs and expenses as a direct result of a {{gmslaprov|Buy in}} exercised against it by a third party, <br> | ::(b) incurs costs and expenses as a direct result of a {{gmslaprov|Buy in}} exercised against it by a third party, <br> | ||
then the {{gmslaprov|Transferor}} agrees to pay within one {{gmslaprov|Business Day}} of a demand from the {{gmslaprov|Transferee}} and hold harmless the {{gmslaprov|Transferee}} with respect to all reasonable costs and expenses listed in sub paragraphs (a) and (b) above properly incurred which arise directly from such failure other than (i) such costs and expenses which arise from the negligence or wilful default of the {{gmslaprov|Transferee}} and (ii) any indirect or consequential losses. <br> | then the {{gmslaprov|Transferor}} agrees to pay within one {{gmslaprov|Business Day}} of a demand from the {{gmslaprov|Transferee}} and hold harmless the {{gmslaprov|Transferee}} with respect to all reasonable costs and expenses listed in sub paragraphs (a) and (b) above properly incurred which arise directly from such failure other than (i) such costs and expenses which arise from the negligence or wilful default of the {{gmslaprov|Transferee}} and (ii) any indirect or consequential losses. <br> | ||
Revision as of 10:48, 18 July 2013
- 9.1 Borrower’s failure to deliver Equivalent Securities
- If Borrower fails to deliver Equivalent Securities in accordance with paragraph 8.3 Lender may:
- (a) elect to continue the Loan (which, for the avoidance of doubt, shall continue to be taken into account for the purposes of paragraph 5.4 or 5.5 as applicable); or
- (b) at any time while such failure continues, by written notice to Borrower declare that that Loan (but only that Loan) shall be terminated immediately in accordance with paragraph 11.2 as if (i) an Event of Default had occurred in relation to the Borrower, (ii) references to the Termination Date were to the date on which notice was given under this sub paragraph, and (iii) the Loan were the only Loan outstanding. For the avoidance of doubt, any such failure shall not constitute an Event of Default (including under paragraph 10.1(i)) unless the Parties otherwise agree.
- If Borrower fails to deliver Equivalent Securities in accordance with paragraph 8.3 Lender may:
- 9.2 Lender’s failure to deliver Equivalent Collateral
- If Lender fails to deliver Equivalent [[Collateral - GMSLA Provision|Collateral]] comprising Non Cash Collateral in accordance with paragraph 8.4 or 8.5, Borrower may:
- (a) elect to continue the Loan (which, for the avoidance of doubt, shall continue to be taken into account for the purposes of paragraph 5.4 or 5.5 as applicable); or
- (b) at any time while such failure continues, by written notice to Lender declare that that Loan (but only that Loan) shall be terminated immediately in accordance with paragraph 11.2 as if (i) an Event of Default had occurred in relation to the Lender, (ii) references to the Termination Date were to the date on which notice was given under this sub paragraph, and (iii) the Loan were the only Loan outstanding. For the avoidance of doubt, any such failure shall not constitute an Event of Default (including under paragraph 10.1(i)) unless the Parties otherwise agree.
- If Lender fails to deliver Equivalent [[Collateral - GMSLA Provision|Collateral]] comprising Non Cash Collateral in accordance with paragraph 8.4 or 8.5, Borrower may:
- 9.3 Failure by either Party to deliver
- Where a Party (the Transferor) fails to deliver Equivalent Securities or Equivalent Collateral by the time required under this Agreement or within such other period as may be agreed between the Transferor and the other Party (the Transferee) and the Transferee:
- (a) incurs interest, overdraft or similar costs and expenses; or
- (b) incurs costs and expenses as a direct result of a Buy in exercised against it by a third party,
- Where a Party (the Transferor) fails to deliver Equivalent Securities or Equivalent Collateral by the time required under this Agreement or within such other period as may be agreed between the Transferor and the other Party (the Transferee) and the Transferee:
then the Transferor agrees to pay within one Business Day of a demand from the Transferee and hold harmless the Transferee with respect to all reasonable costs and expenses listed in sub paragraphs (a) and (b) above properly incurred which arise directly from such failure other than (i) such costs and expenses which arise from the negligence or wilful default of the Transferee and (ii) any indirect or consequential losses.