Exercise of buy-in on failure to redeliver - 2000 GMSLA Provision

2000 Global Master Securities Lending Agreement A Jolly Contrarian owner’s manual™ Resources and navigation Index: Click ᐅ to expand: 2000 GMSLA Navigation (2000 GMSLA): 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | Schedule | Agency Annex | Addendum for Pooled Principal Agency Loans Stock Lending Anatomies: GMSLA Anatomy | Pledge GMSLA Anatomy | 2000 GMSLA Anatomy | OSLA Anatomy Clause 9.4 in a Nutshell™ Use at your own risk, campers! Template:Nutshell 2000 GMSLA 9.4 view template Full text of Clause 9.4 9.4 Exercise of buy-in on failure to redeliver In the event that as a result of the failure of the Transferor to fulfil its redelivery obligations a “buy-in” is exercised against the Transferee, then the Transferor shall account to the Transferee for the total costs and expenses reasonably incurred by the Transferee as a result of such “buy-in”. view template Related agreements and comparisons Related agreements: Click here for the same clause in the 2010 GMSLA Comparison: Template:Gmsla2000diff 9.3 Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

Content and comparisons

Differently worded than the equivalent, Clause 9.3 in the 2010 GMSLA, but they probably get to much the same place: these are “reasonable” costs — meaning you can’t just pluck any old number from the sky or call up your buddy to sell you the securities at an outrageous markup, but — per Barclays v Unicredit the courts will not second guess a dealer on the question of what was a reasonable price, absent obviously egregious behaviour.

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See also

• Clause 9.3 2010 GMSLA
• Buy-in

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