83,022
edits
Amwelladmin (talk | contribs) (Created page with "{{subst:gmslap|5.5}}") |
Amwelladmin (talk | contribs) |
||
Line 2: | Line 2: | ||
{{gmsla2000snap|5.5}} | {{gmsla2000snap|5.5}} | ||
====Commentary==== | ====Commentary==== | ||
See also 5.4, Collateralisation on aggregate, which will generally be the preferred alternative for most financial institutions. | |||
====Summary==== | |||
Where {{gmslaprov|5.5}} applies, the {{gmslaprov|Posted Collateral}} in respect of any {{gmslaprov|Loan}} bears the same proportion to the {{gmslaprov|Market Value}} of the {{gmslaprov|Loaned Securities}} as the {{gmslaprov|Posted Collateral}} bore at the commencement of the {{gmslaprov|Loan}}. Accordingly: <br> | |||
:(a) the {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} must always equal the {{gmslaprov|Required Collateral Value}}; <br> | |||
:(b) whenever the {{gmslaprov|Market Value}} of the {{gmlsaprov|Posted Collateral}} for any {{gmslaprov|Loan}} together with:<br> | |||
::(i) all unpaid amounts due by the Lender under that Loan; and <br> | |||
::(ii) any {{gmslaprov|Income}} payable in respect of {{gmslaprov|Non-Cash Collateral}} <br> | |||
:exceeds the {{gmslaprov|Required Collateral Value}} in respect of the {{gmslaprov|Loan}} together with: <br> | |||
::(i) all amounts due by the Borrower in respect of that {{gmslaprov|Loan}}; and <br> | |||
::(ii) any {{gmslaprov|Income}} payable in respect of {{gmslaprov|Equivalent Securities}},<br> | |||
:{{gmslaprov|Lender}} shall repay to {{gmslaprov|Borrower}} such Equivalent Collateral to eliminate the excess; and <br> | |||
:(c) whenever the {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} together with: <br> | |||
::(i) all amounts due by the Lender under the Loan; and <br> | |||
::(ii) any {{gmslaprov|Income}} payable on {{gmslaprov|Non-Cash Collateral}} <br> | |||
:falls below the {{gmslaprov|Required Collateral Value}} together with: <br> | |||
::(i) all amounts due by the {{gmslaprov|Borrower}} under the {{gmslaprov|Loan}}; and <br> | |||
::(ii) any {{gmlsaprov|Income}} payable under the {{gmslaprov|Equivalent Securities}}, {{gmslaprov|Borrower}} shall (on demand) provide further {{gmslaprov|Collateral}} to {{gmslaprov|Lender}} to eliminate the deficiency.<br> | |||
====See Also==== | ====See Also==== | ||
{{gmslaanatomy}} | {{gmslaanatomy}} |