Exercise of buy-in on failure to redeliver - 2000 GMSLA Provision

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2000 Global Master Securities Lending Agreement
A Jolly Contrarian owner’s manual

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Clause 9.4 in a Nutshell
Use at your own risk, campers!

Template:Nutshell 2000 GMSLA 9.4 view template

Full text of Clause 9.4

9.4 Exercise of buy-in on failure to redeliver
In the event that as a result of the failure of the Transferor to fulfil its redelivery obligations a “buy-in” is exercised against the Transferee, then the Transferor shall account to the Transferee for the total costs and expenses reasonably incurred by the Transferee as a result of such “buy-in”.
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Related agreements and comparisons

Related agreements: Click here for the same clause in the 2010 GMSLA
Comparison: Template:Gmsla2000diff 9.3

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Content and comparisons

Differently worded than the equivalent, Clause 9.3 in the 2010 GMSLA, but they probably get to much the same place: these are “reasonable” costs — meaning you can’t just pluck any old number from the sky or call up your buddy to sell you the securities at an outrageous markup, but — per Barclays v Unicredit the courts will not second guess a dealer on the question of what was a reasonable price, absent obviously egregious behaviour.
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See also

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References