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2000 GMSLA Anatomy™
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.
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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.
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