Template:Nutshell GMSLA 5.5

5.5 Where 5.5 applies, the Posted Collateral on any Loan must bear the same proportion to the Market Value of the Loaned Securities as it bore at the beginning of the Loan. Therefore:

(a) the Market Value of the Posted Collateral (including income etc.) must always equal the Required Collateral Value;

(b) whenever the Market Value of the Posted Collateral for any Loan exceeds the Required Collateral Value under the Loan Lender must repay to Borrower enough Equivalent Collateral to eliminate the excess; and

(c) whenever the Market Value of the Posted Collateral falls below the Required Collateral Value Borrower shall (on demand) provide further Collateral to Lender to eliminate the deficiency.