Existing Loans - GMSLA Provision: Difference between revisions

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{{gmslaanat|27.4}}
{{gmslaanat|27.4}}
A simple clean up provision to inherit all existing {{gmslaprov|Loan}}s under {{osla}}s and older {{gmsla}}s. The more pedantic will provide in {{gmslaprov|Schedule 11}} that those agreements are all deemed terminated, but this really doesn’t achieve much legally. If your [[netting]] engine is thrown for a loop by the existence of two live master agreements between the same counterparties (hey — it can happen) then terminating the superseded one for good order is a sensible step.
A simple clean up provision to inherit all existing {{gmslaprov|Loan}}s under {{osla}}s and older {{gmsla}}s.  


Note also that, unlike an {{isdama}}, a GMSLA ''can'' be terminated as a separate thing, apart from all outstanding transactions under it.
The more pedantic will provide in {{gmslaprov|Schedule 11}} that those legacy [[stock lending agreement]]s are all deemed terminated, and the super cautious might add that the extant loans are governed by the new agreement as a [[single agreement]] — but  ''legally'' this doesn’t go much further than the text of para {{gmslaprov|27.4}}. If your [[netting]] engine is thrown for a loop by the existence of two live [[Master netting agreement|master agreements]] between the same counterparties (hey — it can happen) then formally terminating the superseded one for good order is a sensible step — but this is really an operational point more than a legal one.
 
Note also that, unlike an {{isdama}}, a [[GMSLA]] ''can'' be terminated as a separate thing conceptual item, apart from all outstanding {{gmslaprov|transaction}}s under it.