2010 Global Master Securities Lending Agreement

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GMSLA Anatomy

1. Applicability
2. Interpretation

2.1 Definitions
Act of Insolvency
Agency Annex
Alternative Collateral
Applicable Law
Automatic Early Termination
Base Currency
Business Day
Buy In
Cash Collateral
Close of Business
Collateral
Defaulting Party
Delivery
Designated Office
Equivalent or equivalent to
Income
Income Record Date
Letter of Credit
Loaned Securities
Margin
Market Value
Nominee
Non Cash Collateral
Non Defaulting Party
Notification Time
Parties
Posted Collateral
Reference Dealers
Required Collateral Value
Sales Tax
Settlement Date
Stamp Tax
Tax
2.2 Headings
2.3 Market terminology
2.4 Currency conversions
2.5
2.6 Modifications etc. to legislation

3. Loans of Securities
4.1 Delivery

4.1 Delivery of Securities on commencement of Loan
4.2 Requirements to effect Delivery
4.3 Deliveries to be simultaneous unless otherwise agreed
4.4 Deliveries of Income

5. Collateral

5.1 Delivery of Collateral on commencement of a Loan
5.2 Deliveries through securities settlement systems generating automatic payments
5.3 Substitutions of Collateral
5.4 Marking to Market of Collateral during the currency of a Loan on aggregated basis
5.5 Marking to Market of Collateral during the currency of a Loan on a Loan by Loan basis
5.6 Requirements to deliver excess Collateral
5.7 (Attribution of Collateral to Loans)
5.8 Timing of repayments of excess Collateral or deliveries of further Collateral
5.9 Substitutions and extensions of Letters of Credit

6. Distributions and Corporate Actions

7. Rates applicable to Loaned Securities and Cash Collateral

7.1 Rates in respect of Loaned Securities
7.2 Rates in respect of Cash Collateral
7.3 Payment of rates

8. Delivery of Equivalent Securities

8.1. Lender’s right to terminate a Loan
8.2. Borrower’s right to terminate a Loan
8.3. Delivery of Equivalent Securities on termination of a Loan
8.4. Delivery of Equivalent Collateral on termination of a Loan
8.5. Delivery of Letters of Credit
8.6. Delivery obligations to be reciprocal

9. Failure to Deliver

9.1 Borrower’s failure to deliver Equivalent Securities
9.2 Lender’s failure to deliver Equivalent Collateral
9.3 Failure by either Party to deliver

10. Events of Default

10.1 List of Events of Default
10.1(a): Failure to pay Collateral
10.1(b): Unremedied failure to manufacture payments
10.1(c): Failure to pay or deliver
10.1(d): Insolvency
10.1(e): Breach of warranty
10.1(f): Repudiation
10.1(g): Seizure of assets
10.1(h): Suspension from exchange
10.1(i): Unremedied failure to perform
10.2 Notification of Events of Default
10.3 Complete statement of remedies
10.4 No consequential loss

11. Consequences of an Event of Default

11.1 Application of 11.2 to 11.7 following Event of Default
11.2 Delivery and payment obligations following Event of Default
11.3 Definition of Default Market Value
11.4 Determination of Default Market Value
11.5 Net Value determination where unable to sell Securities
11.6 Where Non-Defaulting Party has not determined Default Market Value
11.7 Other costs, expenses and interest payable in consequence of an Event of Default
11.8 Set-off

12. Taxes

12.1. Withholding, gross up and provision of information
12.2. Deduction
12.3. Cooperation
12.4. Stamp Tax
12.5. Tax indemnity
12.6. Sales Tax
12.7. Retrospective changes in law

13. Lender’s Warranties
14. Borrower’s Warranties
15. Interest on Outstanding Payments
16. Termination of this Agreement
17. Single Agreement
18. Severance
19. Specific Performance
20. Notices
21. Assignment
22. Non Waiver
23. Governing Law and Jurisdiction
24. Time
25. Recording
26. Waiver of Immunity
27. Miscellaneous

27.1 - Entire agreement
27.2 - Warranty as to text
27.3 - Amendments
27.4 - Existing Loans
27.5 - Automation
27.6 - Survival on termination of obligations
27.7 - Survival on termination of warranties
27.8 - Rights cumulative
27.9 - Counterparts
27.10 - Contracts (Rights of Third Parties) Act 1999

2010 GMSLA: Full wikitext · Nutshell wikitext | GMLSA legal code | GMSLA Netting
Pledge GMSLA: Hard copy (ISLA) · Full wikitext · Nutshell wikitext |
1995 OSLA: OSLA wikitext | OSLA in a nutshell | GMSLA/PGMSLA/OSLA clause comparison table
From Our Friends On The Internet: Guide to equity finance | ISLA’s guide to securities lending for regulators and policy makers

Navigation
2010 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 · Schedule · Agency Annex · Addendum for Pooled Principal Agency Loans

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

2018 Pledge 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
1995 OSLA 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 · Schedule · Appendix
Stock lending clause comparison table

Stock Lending Anatomies: GMSLA Anatomy · Pledge GMSLA Anatomy · OSLA Anatomy
Stock Loan owner’s manuals: 2010 GMSLA · 2000 GMSLA · Pledge GMSLA · OSLA

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The prevailing market standard English law stock lending master agreement. Compare with the new York law Master Securities Lending Agreement and, latterly the English law 2018 Pledge GMSLA.

You can access the clause-by-clause anatomy from the table of contents over ==> there.

How do you say it? However you like, basically. The 2010 GMSLA is an agreement once drafted by a magic circle law firm but whose carriage nowadays is almost exclusively handled by inhouse lawyers and negotiators, to the point where seeking external advice on what a given provision means is a bad idea, because private practice lawyers will have far less of a clue — having likely never looked at a 2010 GMSLA — than will their inhouse clients who ask the question. They will be baffled by the terminology — is it a loan or isn’t it? — the fact that failing to redeliver securities or collateral is de rigueur and does not usually sifnify the end of the world as we know it, that there should really not be damages for consequential losses and countless other trifling, tedious things.

This won’t stop the inhouse clients asking, of course, and indeed they are known to have the bright idea of outsourcing GMSLA negotiations to outside law firms. This is a disaster. Don’t do it, folks.

See also