Attribution of Collateral to Loans - GMSLA Provision
2010 Global Master Securities Lending Agreement
Clause 5.7 in a Nutshell™
Full text of Clause 5.7
Related agreements and comparisons
Content and comparisons
Since it relates to the 2010 GMSLA’s netting arrangements and, by its very underlying theory, there is no netting in a 2018 Pledge GMSLA, there is no equivalent provision in the 2018 Pledge GMSLA.
This is a key provision in terms of the GMSLA Netting analysis because it provides a means for ascertaining the particular collateral that is attributable to a given Loan, which means that, should you decide to voluntarily terminate all Loans as a prelude to a close out, there is certainty as to what Collateral attaches to what loan, and you can therefore determine the Default Market Value and so on.