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

From The Jolly Contrarian
Jump to navigation Jump to search

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

Resources and navigation

Index: Click to expand:Navigation (2000 GMSLA): 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | Schedule | Agency Annex | Addendum for Pooled Principal Agency Loans
Stock Lending Anatomies: GMSLA Anatomy | Pledge GMSLA Anatomy | 2000 GMSLA Anatomy | OSLA Anatomy

Clause 9.4 in a Nutshell

Use at your own risk, campers!

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”.

Related agreements and comparisons

Related agreements: Click here for the same clause in the 2010 GMSLA
Comparison: Click to [[special:diff/{{{1}}}/{{{2}}}|compare]] the 2000 GMSLA and 2010 GMSLA versions of this clause.

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

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.

Template

Summary

Template:M summ 2000 GMSLA 9.4

Template

See also

Template

References