Delivery and payment obligations following Event of Default - GMSLA Provision: Difference between revisions
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====Commentary==== | ====Commentary==== | ||
See also [[Netting under a GMSLA]]. | See also [[Netting under a GMSLA]]. | ||
Revision as of 10:02, 14 October 2016
11.2 in a Nutshell™ (GMSLA edition)
11.2 Acceleration: The Parties’ obligations will be accelerated as at the Event of Default (the Termination Date) as follows:
- (a) The Non-Defaulting Party will determine the Default Market Value of all amounts (and securities) due by each Party under paragraph 11.4 as at the Termination Date.
- (b) Using those values, [the Non-Defaulting Party will determine and notify][1]what each Party owes as at the Termination Date, converting into the Base Currency at the Spot Rate where necessary, and will set those sums off against each other. The Party owing the greater amount must pay the difference on the Business Day after notification.
- (c) and (d) [(d) being the vice-versa] If that balance is payable by a Party who had delivered a Letter of Credit to the other Party the other Party must draw on the Letter of Credit to settle the amount due and then deliver it for cancellation.
Commentary
See also Netting under a GMSLA.
Related Provisions
- ↑ Well, we assume it will be the NDP: the 2010 GMSLA rather brilliantly puts it into an unattributed passive, as if God is going to to it, or it will magically happen by itself. Go, ISLA’s crack drafting squad™.