Amendments - GMSLA Provision

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2010 Global Master Securities Lending Agreement
A Jolly Contrarian owner’s manual

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GMSLA

Clause 27.3 in a Nutshell
Use at your own risk, campers!

27.3 Amendments: Amendments must be in writing and executed or confirmed by an exchange of messages over an electronic messaging system.
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Full text of Clause 27.3

27.3 Unless otherwise provided for in this Agreement, no amendment in respect of this Agreement will be effective unless in writing (including a writing evidenced by a facsimile transmission) and executed by each of the Parties or confirmed by an exchange of telexes or electronic messages on an electronic messaging system.
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Related agreements and comparisons

Related agreements: Click here for the same clause in the 2018 Pledge GMSLA
Related agreements: Click here for the same clause in the 1995 OSLA
Comparison: Template:Gmsladiff 27.3
Comparison: Template:Osladiff 27.3

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Content and comparisons

Amazing how so small and harmless looking a slug of boilerplate can bury so many unexpected and, really, unnecessary problems. This is a no oral modification clause for an agreement where much communication, pricing and transacting happens in a fairly informal way[1] but quaintly archaic mention of telexes and fax doesn’t help, nor does the expression “electronic messaging system”.
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Summary

Does an exchange of emails count as confirmation by “electronic messages on an electronic messaging system”? you might think so, but the judgment in Greenclose v National Westminster Bank plc — albeit about the ISDA Master Agreement might give you a different view.

Much of the meat and drink of the commercial terms of a 2010 GMSLA — dividend rates, pricing schedules, individual transaction terms — take place outside the four corners of the master agreement itself, so a no oral modification clause seems a little ripe, unless you construe it narrowly to refer only to the terms encoded in the master agreement and its schedules, I guess.
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See also

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References

  1. Less so nowadays with commercial electronic settlement systems like Equilend