Determinations - GMRA Provision

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

Resources and navigation

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

Paragraph 10(c) in a Nutshell™

Use at your own risk, campers!

10(c) Determinations: The non-Defaulting Party will determine: (i) Values: the Default Market Values of Equivalent Securities and Equivalent Margin Securities, and the Cash Margin and accrued interest to be transferred and the Repurchase Prices to be paid by each party for all Transactions as at the Repurchase Date; and (ii) Net amount due: as at the Repurchase Date, what each party owes the other using those Default Market Values and converting amounts where necessary into the Base Currency at the prevailing Spot Rate and only the balance of the account (having applied any necessary set off) will be payable on the next Business Day. view template

Full text of Paragraph 10(c)

10(c) (i) The Default Market Values of the Equivalent Securities and any Equivalent Margin Securities to be transferred, the amount of any Cash Margin (including the amount of interest accrued) to be transferred and the Repurchase Prices to be paid by each party shall be established by the non-Defaulting Party for all Transactions as at the Repurchase Date; and (ii) on the basis of the sums so established, an account shall be taken (as at the Repurchase Date) of what is due from each party to the other under this Agreement (on the basis that each party's claim against the other in respect of the transfer to it of Equivalent Securities or Equivalent Margin Securities under this Agreement equals the Default Market Value therefor) and the sums due from one party shall be set off against the sums due from the other and only the balance of the account shall be payable (by the party having the claim valued at the lower amount pursuant to the foregoing) and such balance shall be due and payable on the next following Business Day. For the purposes of this calculation, all sums not denominated in the Base Currency shall be converted into the Base Currency on the relevant date at the Spot Rate prevailing at the relevant time. view template

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: Knowing and, really, caring very little about other kinds of repo agreement, we have nothing presently to compare the Global Master Repurchase Agreement with.

Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

Content and comparisons

see also Paragraph 10(h) for terminations on a settlement failure for the return of Equivalent Securities or Margin which is the Global Master Repurchase Agreement’s equivalent of a mini close-out.

Fun fact: you can assign this amount without your counterparty’s consent under Clause 16. Good news, hey?