Template:M summ GMRA 2000 6(j)

Clause 6(j) is the Global Master Repurchase Agreement's version of the ISDA Master Agreement’s Section 2(a)(iii): it is a flawed asset provision, though in an agreement without any particular need for one. Unlike the ISDA’s 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.