Deliveries of Income - Pledge GMSLA Provision

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2018 Global Master Securities Lending Agreement (Pledge Version)
A Jolly Contrarian owner’s manual™

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GMSLA

Clause 4.3 in a Nutshell
Use at your own risk, campers!

4.3 Deliveries of Income
Where a Borrower receives Income on any Loaned Securities, it must provide the Lender with any customary endorsements or assignments needed to effect payment or delivery of Equivalent Income in accordance with paragraph 6, whether or not it received such endorsements or assignments under the Loaned Securities.
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Full text of Clause 4.3

4.3 Deliveries of Income
In respect of Income being paid in relation to any Loaned Securities, Borrower shall provide to Lender any endorsements or assignments as shall be customary and appropriate to effect, in accordance with paragraph 6, the payment or delivery of money or property in respect of such Income to Lender, irrespective of whether Borrower received such endorsements or assignments in respect of any Loaned Securities.
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Related agreements and comparisons

Related agreements: Click here for the same clause in the 2010 GMSLA
Comparison: Template:Gmsladiff 4.3

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Content and comparisons

Template:M comp disc Pledge GMSLA 4.3
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Summary

Rather like the equivalent provision (para 4.4) in the 2010 GMSLA, only no reference to Collateral, seeing as the Lender doesn’t ever get title to the Collateral, so all the Income automatically vests in the Borrower anyway without any of this need for customary and appropriate endorsements (and certainly no risk that the Lender has disposed of the Collateral, which it doesn’t own in the first place.
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See also

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References