Template:M comp disc GMSLA 27.4

There is no equivalent provision in the 2018 Pledge GMSLA. Agent lenders will need each principal’s consent before migrating loans from title transfer to pledge format, and (we can only surmise) it didn’t occur to ISLA’s crack drafting squad™ that no agent lender, let alone any principal, would ever want to have both title transfer and pledged collateral outstanding at any one time — and even if they did, as a practical matter this would impossible for brokers to reconcile in their trade monitoring and risking systems.

Since the nature of agency loans is that the master agreement is deemed to be a separate agreement between each principal and the dealer from the individual principal’s date of accession, nor does it make a difference that the master agreement between broker and agent may (and usually will) be executed before any individual principal is moved from one to the other. Anyway, this is angels on the head of a pin stuff, since no-one would take the point anyway.