Template:Nutshell GMSLA 11.3

11.3 The Default Market Value:

• of a Letter of Credit will be zero
• of any Equivalent Securities or any other Equivalent Non-Cash Collateral is determined under paragraphs 11.4 to 11.6 below, and:

(a) the Appropriate Market means the most appropriate market for any securities determined by the Non Defaulting Party;

(b) the Default Valuation Time means, relating to any Event of Default, the close of business in the Appropriate Market on the fifth dealing day after (i) the day of the Event of Default (or where Automatic Early Termination has occurred, after the day when the Non Defaulting Party first became aware of the Event of Default; (c) Deliverable Securities means Equivalent Securities or Equivalent Non-Cash Collateral to be delivered by the Defaulting Party; (d) Net Value means at any time, in relation to any Deliverable Securities or Receivable Securities, the amount which, in the reasonable opinion of the Non Defaulting Party, represents their fair market value, having regard to such pricing sources and methods (which may include, without limitation, available prices for securities with similar maturities, terms and credit characteristics as the relevant Equivalent Securities or Equivalent Collateral) as the Non Defaulting Party considers appropriate, less, in the case of Receivable Securities, or plus, in the case of Deliverable Securities, all Transaction Costs incurred or reasonably anticipated in connection with the purchase or sale of such securities; (e) Receivable Securities means Equivalent Securities or Equivalent Non-Cash Collateral to be delivered to the Defaulting Party; and (f) Transaction Costs in relation to any transaction contemplated in paragraph 11.4 or 11.5 means the reasonable costs, commissions (including internal commissions), fees and expenses (including any mark up or mark down or premium paid for guaranteed delivery) incurred or reasonably anticipated in connection with the purchase of Deliverable Securities or sale of Receivable Securities, calculated on the assumption that the aggregate thereof is the least that could reasonably be expected to be paid in order to carry out the transaction.