Complete statement of remedies - GMSLA Provision
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2010 Global Master Securities Lending Agreement
Clause 10.3 in a Nutshell™ Use at your own risk, campers!
Full text of Clause 10.3
Related agreements and comparisons
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Content and comparisons
Curiously, this clause is lacking in the 2018 Pledge GMSLA. Perhaps because there will be all kinds of rinky-dinks with security enforcement, account control agreements and all that tedious stuff, meaning that is really isn’t literally true. However, the gist of the original message should not be lost and, alas and lack, it does tend to get lost in the minds of paranoid legal eagles that should be reviewing the stock lending agreements for their clients. Especially private practice lawyers, who are now so out of practice in passing on the terms of the 2010 GMSLA that they are often at a loss to understand its commercial gist.
Summary
A provision designed to strike despair into the hearts of litigators and those of an opportunisitic bent who like to see legally-articulated wooliness as some kind of option: No losses of profit (though that is said explicitly is Clause 10.4) no punitive damages, no equitable injunctions, no absurd indemnities. Just the dispassionatelycalculated values of Securities lent and Collateral posted.