Attribution of Collateral to Loans - GMSLA Provision
2010 Global Master Securities Lending Agreement
Clause 5.7 in a Nutshell™
Use at your own risk, campers!
Full text of Clause 5.7
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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.