Template:Nutshell GMSLA 5.4

5.4 Unless Single Loan margining under 5.5 applies:

(a) Required Collateral Value: The aggregate Market Value of Posted Collateral for all outstanding Loans must equal the aggregate Market Value of the Loaned Securities plus the Margin.

(b) Excess Collateral: if the aggregate Market Value of the Posted Collateral (plus unpaid income etc) exceeds the aggregate of the Required Collateral Value the Lender must deliver to Borrower enough Equivalent Collateral to eliminate the excess;

(c) Collateral Deficiency: if the aggregate Market Value of the Posted Collateral (plus unpaid income etc) falls below the aggregate Required Collateral Value the Borrower must provide further Collateral to Lender to eliminate the deficiency.

(d) Shorts and Longs: where a Party acts as both Lender and Borrower, paragraphs 5.4(b) and 5.4(c) apply separately to Loans where it is a Lender and Loans where it is a Borrower.