Delivery and payment obligations following Event of Default - GMSLA Provision
GMSLA Anatomy™
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11. Consequences of an Event of Default
- 11.1 Application of 11.2 to 11.7 following Event of Default
- 11.2 Delivery and payment obligations following Event of Default
- 11.3 Definition of Default Market Value
- 11.4 Determination of Default Market Value
- 11.5 Net Value determination where unable to sell Securities
- 11.6 Where Non-Defaulting Party has not determined Default Market Value
- 11.7 Other costs, expenses and interest payable in consequence of an Event of Default
- 11.8 Set-off
Multi-level set-off
Paragraph 11.2(b) sets up a set-off of amounts due under the 2010 GMSLA to create a single net payment due under the 2010 GMSLA in respect of all terminated transactions. The Non-Defaulting Party can, in turn, set that net sum off against amounts owed to or by the Defaulting Party under other agreements (such as an ISDA Master Agreement.
See also
- ↑ 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™.