Corporate actions - GMSLA Provision: Difference between revisions

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{{gmslaanat|6.7}}
{{Manual|MSG|2010|6.7|Clause|6.4|medium}}
''Compare Paragraph {{gmsla2000prov|6.4}} of the {{2000gmsla}}, which (ahem ~spoiler alert~) is materially the same''
 
There is a  tension between {{gmslaprov|6.6}} and {{gmslaprov|6.7}}: while under {{gmslaprov|6.6}} a {{gmslaprov|Borrower}} is not obliged to ''vote'' in a certain way, if it does so and acquires a certain benefit ''and the {{gmslaprov|Lender}} requests'', it has to pass over that benefit. Best illustrated by way of example:
 
:''{{italianwithdrawalright}}''
 
In this case the {{gmslaprov|Lender}} who has lent out over the [[record date]] could not (without prior agreement) oblige the {{gmslaprov|Borrower}} to vote against the {{tag|merger}}, but if the {{gmslaprov|Borrower}} has done so, the {{gmslaprov|Lender}} can, by request under {{gmslaprov|6.7}}, require the {{gmslaprov|Borrower}} to deliver the proceeds of the withdrawal in lieu of {{gmslaprov|Equivalent}} {{gmslaprov|Securities}}.