9 - GMSLA Provision: Difference between revisions

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{{gmslaprov|9}}. {{gmslaprov|Failure to Deliver}} <BR>
#REDIRECT [[Failure to Deliver - GMSLA Provision]]
:{{gmslaprov|9.1}} '''{{gmslaprov|Borrower’s failure to deliver Equivalent Securities}}''' <br>
::If {{gmslaprov|Borrower}} fails to deliver {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} in accordance with paragraph {{gmslaprov|8.3}} {{gmslaprov|Lender}} may: <br>
::(a) elect to continue the {{gmslaprov|Loan}} (which, for the avoidance of doubt, shall continue to be taken into account for the purposes of paragraph {{gmslaprov|5.4}} or {{gmslaprov|5.5}} as applicable); or <br>
::(b) at any time while such failure continues, by written notice to {{gmslaprov|Borrower}} declare that that {{gmslaprov|Loan}} (but only that {{gmslaprov|Loan}}) shall be terminated immediately in accordance with paragraph {{gmslaprov|11.2}} as if (i) an {{gmslaprov|Event of Default}} had occurred in relation to the {{gmslaprov|Borrower}}, (ii) references to the {{gmslaprov|Termination Date}} were to the date on which notice was given under this sub paragraph, and (iii) the {{gmslaprov|Loan}} were the only {{gmslaprov|Loan}} outstanding.  For the avoidance of doubt, any such failure shall not constitute an {{gmslaprov|Event of Default}} (including under paragraph {{gmslaprov|10.1(i)}}) unless the {{gmslaprov|Parties}} otherwise agree. <br>
:{{gmslaprov|9.2}} '''{{gmslaprov|Lender’s failure to deliver Equivalent Collateral}}''' <br>
::If {{gmslaprov|Lender}} fails to deliver {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} comprising {{gmslaprov|Non Cash Collateral}} in accordance with paragraph {{gmslaprov|8.4}} or {{gmslaprov|8.5}}, {{gmslaprov|Borrower}} may: <br>
::(a) elect to continue the {{gmslaprov|Loan}} (which, for the avoidance of doubt, shall continue to be taken into account for the purposes of paragraph {{gmslaprov|5.4}} or {{gmslaprov|5.5}} as applicable); or <br>
::(b) at any time while such failure continues, by written notice to {{gmslaprov|Lender}} declare that that {{gmslaprov|Loan}} (but only that {{gmslaprov|Loan}}) shall be terminated immediately in accordance with paragraph {{gmslaprov|11.2}} as if (i) an {{gmslaprov|Event of Default}} had occurred in relation to the {{gmslaprov|Lender}}, (ii) references to the {{gmslaprov|Termination Date}} were to the date on which notice was given under this sub paragraph, and (iii) the {{gmslaprov|Loan}} were the only {{gmslaprov|Loan}} outstanding.  For the avoidance of doubt, any such failure shall not constitute an {{gmslaprov|Event of Default}} (including under paragraph {{gmslaprov|10.1(i)}}) unless the {{gmslaprov|Parties}} otherwise agree. <br>
:{{gmslaprov|9.3}} '''{{gmslaprov|Failure by either Party to deliver}}''' <br>
::Where a {{gmslaprov|Party}} (the {{gmslaprov|Transferor}}) fails to deliver {{gmslaprov|Equivalent}} Securities or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} by the time required under this Agreement or within such other period as may be agreed between the {{gmslaprov|Transferor}} and the other {{gmslaprov|Party}} (the {{gmslaprov|Transferee}}) and the {{gmslaprov|Transferee}}: <br>
::(a) incurs interest, overdraft or similar costs and expenses; or <br>
::(b) incurs costs and expenses as a direct result of a {{gmslaprov|Buy in}} exercised against it by a third party, <br>
then the {{gmslaprov|Transferor}} agrees to pay within one {{gmslaprov|Business Day}} of a demand from the {{gmslaprov|Transferee}} and hold harmless the {{gmslaprov|Transferee}} with respect to all reasonable costs and expenses listed in sub paragraphs (a) and (b) above properly incurred which arise directly from such failure other than (i) such costs and expenses which arise from the negligence or wilful default of the {{gmslaprov|Transferee}} and (ii) any indirect or consequential losses. <br>

Latest revision as of 10:50, 18 July 2013

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