Default interest - GMRA Provision

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2000 Global Master Repurchase Agreement
A Jolly Contrarian owner’s manual™

Resources and navigation

Resources: 2010 GMRA: Full wikitext · Nutshell wikitext
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2000 GMRA Table of Contents · 1 · 2 · 3 · 4 · 5 · 6 · 7 · 8 · 9 · 10 · 11 · 12 · 13 · 14 · 15 · 16 · 17 · 18 · 19 · 20 · 21 · Schedule · Equities Annex: EA 1 · EA 2 · EA 3 · EA 4 · EA 5 · Buy/Sellback Annex · BSA 1 · BSA 2 · BSA 3 · BSA 4 · BNA 5

Index: Click to expand:

Clause 10(f) in a Nutshell

Use at your own risk, campers!
10(f) The Defaulting Party must pay the non-Defaulting Party its reasonable professional expenses incurred in connection with an Event of Default plus interest calculated at LIBOR or, if the expense relates to a particular Transaction, the higher of LIBOR and the Pricing Rate for that Transaction.

Full text of Clause 10(f)

10(f) The Defaulting Party shall be liable to the non-Defaulting Party for the amount of all reasonable legal and other professional expenses incurred by the non-Defaulting Party in connection with or as a consequence of an Event of Default, together with interest thereon at LIBOR or, in the case of an expense attributable to a particular Transaction, the Pricing Rate for the relevant Transaction if that Pricing Rate is greater than LIBOR.

Related agreements and comparisons

Related agreements: Click here for the same clause in the 1996 MRA, when we get round to finding out the first thing about it.
Comparison: Template:Gmradiff 11(h)

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Content and comparisons

Template:M comp disc GMRA 10(f)

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Summary

Note reference to dramatic look gopherLIBOR. LIBOR also applies directly to default payments through Clause 12, but the in-through-the-out-door, reference non-default scenarios too is not quite as pronounced as it is in the 2010 GMSLA, but this will not stop your five-year, thousand-strong LIBOR remediation regulatory change juggernaut tying you up in months trying to work out how badly you must care about LIBOR in the Global Master Repurchase Agreement.

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General discussion

Template:M gen GMRA 10(f)

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See also

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References