Borrower’s failure to deliver Equivalent Securities - GMSLA Provision: Difference between revisions
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If the {{gmslaprov|Lender}} decides to terminate, you are into the realm of the fabled and famous {{gmslaprov|mini close-out}}, wherein the {{gmslaprov|Lender}} exercises rights to terminate and value the {{gmslaprov|Loan}} by itself ''as if it were'' an {{gmslaprov|Event of Default}}, whilst not ''actually'' being an {{gmslaprov|Event of Default}}. | If the {{gmslaprov|Lender}} decides to terminate, you are into the realm of the fabled and famous {{gmslaprov|mini close-out}}, wherein the {{gmslaprov|Lender}} exercises rights to terminate and value the {{gmslaprov|Loan}} by itself ''as if it were'' an {{gmslaprov|Event of Default}}, whilst not ''actually'' being an {{gmslaprov|Event of Default}}. | ||
{{nuts|GMSLA|9.1}} | |||
====Related Provisions==== | ====Related Provisions==== | ||
{{gmslaanatomy}} | {{gmslaanatomy}} | ||
Revision as of 09:34, 30 July 2015
Commentary
If the Lender decides to terminate, you are into the realm of the fabled and famous mini close-out, wherein the Lender exercises rights to terminate and value the Loan by itself as if it were an Event of Default, whilst not actually being an Event of Default.
9.1 in a Nutshell™ (GMSLA edition)
9.1 Borrower’s failure to deliver Equivalent Securities : If Borrower doesn’t deliver Equivalent Securities under para 8.3 Lender may:
- (a) continue the Loan; or
- (b) terminate the individual Loan per para 11.2 as if the Borrower was subject to an Event of Default but the Loan were the only outstanding Loan.
Notwithstanding the above, such a failure will not be an Event of Default.
Related Provisions
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