Expenses - Pledge GMSLA Provision
2018 Global Master Securities Lending Agreement (Pledge Version)
Clause 27 in a Nutshell™
Full text of Clause 27
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Since the proposition that “each party bears its own costs of performing the agreement” goes heartily unsaid, and due to the title-transfer nature of the 2010 GMSLA there is no Custodian whose expenses the Borrower and Lender have to allocate between them, this Expenses clause is unique to the 2010 GMSLA and there is noequivalent to it in the 2010 GMSLA or, for that matter, the 1995 OSLA.
Each party, as you would expect, pays its own costs of performance. The Borrower pays the Custodian’s costs – which stands to reason since it is the Borrower who is insisting on this complicated pledge arrangement, which necessitates a Custodian, in the first place.