|
|
Line 1: |
Line 1: |
| {{Manual|MSG|2010|Equivalent|Clause|Equivalent|medium}} | | {{Manual|MSG|2010|Equivalent|Clause|Equivalent|medium}} |
| “{{gmslaprov|Notice}}” under {{gmslaprov|6.7}} is the notice required to participate in a [[corporate action]].
| |
|
| |
| This is a beast of a provision to parse. What I think it means in summary is set out in the panel to the right.
| |
|
| |
| The key thing is that “{{tag|equivalent}}” doesn't mean “similar” or “somewhat like the thing I gave you”. It means EXACTLY THE SAME THING. Same [[CUSIP]]; same [[ISIN]]. Fully [[fungible]]. Nothing else will do. Accept no substitute. The only distinction that “[[equivalent]]” permits is that the security does not have to be the ''precise'' security, down to the individual certificate number<ref>i.e., if it where a [[security-printed]] physical certificate form which, in these enlightened, electronic, [[dematerialised]] times, it simply won’t be.</ref>, that I gave you, as long as it is identical to and [[fungible]] with it.
| |
|
| |
| The reason for that is that a [[stock loan]] is a [[title transfer arrangement]]: since you are free to do with the stock I gave you as you please, you can (and probably will) sell it to someone else. So I can't very well expect you to give exactly the same item back to me. [[2.3 - GMSLA Provision|It’s ''not'' a loan, after all]]. And actually if I were able to ask for the same item back, it would interfere with the legal characterisation of our {{tag|stock loan}} as a {{tag|title transfer}} arrangement. If you’re the sort of person that likes a [[true sale opinion]].
| |
| ===GMSLA Equivalence===
| |
| {{gmsla equivalence}}
| |
|
| |
| {{sa}}
| |
| *[[Fungible]]
| |
| *[[True sale opinion]]
| |
| *{{gmraprov|Equivalent}} in the {{gmra}}
| |
| {{ref}}
| |