Amendments - GMSLA Provision

From The Jolly Contrarian
Jump to navigation Jump to search

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

Resources and navigation

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
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

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

Index: Click to expand:

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.

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.

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

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

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”.

Template

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.

Template

See also

Template

References

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