Default interest - GMRA Provision

GMRA Anatomy™ Go Premium In a Nutshell™ Clause 10(f): 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. view template Global Master Repurchase Agreement 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. view template Resources: 2010 GMRA: Full wikitext · Nutshell wikitext Navigation 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 ᐅ to expand: GMRA Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

Compare with Clause 4(f), which is the standard interest payable on the cash leg of a Transaction. This is default interest, where things have gone pete tong and one side has referred matters to its learned friends. In theory in scope for LIBOR remediation — cue obligatory reference to the dramatic look gopher — but is the world going to go any further towards Hell in a hand-basket if there is confusion about the interest basis on which you can recover legal fees? Respectfully — given that, on the theory of the game your Counterparty is a smoking ruin and so you are already in hell, in a hand-basket, the JC respectfuilly submits it will not.

And now: A quick dramatic look gopher.

See also

• Clause 4(f) — Interest on Cash Margin