6(j) - GMRA Provision

GMRA Anatomy™ →Go uptown 6(j) If the parties have specified in Annex I hereto that this paragraph 6(j) shall apply, each obligation of a party under this Agreement (other than an obligation arising under paragraph 10) is subject to the condition precedent that none of those events specified in paragraph 10(a) which are identified in Annex I hereto for the purposes of this paragraph 6(j) (being events which, upon the serving of a Default Notice, would be an Event of Default with respect to the other party) shall have occurred and be continuing with respect to the other party. (view template) Resources: 2010 GMRA: Full wikitext · Nutshell wikitext Navigation 2000 GMRA Table of Contents · 1 · 2 · 3 · 4 · 5 · 6 · 7 · 8 · 9 · 10 · 11 · 12 · 13 · 14 · 15 · 16 · 17 · 18 · 19 · 20 · 21 · Schedule · Equities Annex: EA 1 · EA 2 · EA 3 · EA 4 · EA 5 · Buy/Sellback Annex · BSA 1 · BSA 2 · BSA 3 · BSA 4 · BNA 5 Index: Click ᐅ to expand: GMRA Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

This is the Global Master Repurchase Agreement's version of a flawed asset provision—similar, you will note, to the ISDA Master Agreement’s vaunted Section 2(a)(iii). Unlike the ISDA version, it's toggle-able, suggesting the framers of the Global Master Repurchase Agreement were somewhat embarrassed to include it. Rightly, because a flawed asset clause doesn’t make a colossal amount of sense in an intrinsically margined, callable transactions like a repo agreement.

Oddly, the 2010 GMSLA doesn't have a flawed asset provision (the closest it gets is Paragraph 8.6), even though in most every other respect, it’s very similar to the Global Master Repurchase Agreement.