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| | {{a|gmra|}} |
| | '''{{gmraprov|1}}. {{gmraprov|Applicability}}'''<br> |
| | '''{{gmraprov|2}}. {{gmraprov|Definitions}} '''<br> |
| | '''{{gmraprov|3}}. {{gmraprov|Initiation; Confirmation; Termination}} '''<br> |
| | '''{{gmraprov|4}}. {{gmraprov|Margin Maintenance}} '''<br> |
| | '''{{gmraprov|5}}. {{gmraprov|Income Payments}} '''<br> |
| | '''{{gmraprov|6}}. {{gmraprov|Payment and Transfer}} '''<br> |
| | '''{{gmraprov|7}}. {{gmraprov|Contractual Currency}} '''<br> |
| | '''{{gmraprov|8}}. {{gmraprov|Substitution}}''' <br> |
| | '''{{gmraprov|9}}. {{gmraprov|Representations}} '''<br> |
| | '''{{gmraprov|10}}. {{gmraprov|Events of Default}} '''<br> |
| | '''{{gmraprov|11}}. {{gmraprov|Tax Event}} '''<br> |
| | '''{{gmraprov|12}}. {{gmraprov|Interest}} '''<br> |
| | '''{{gmraprov|13}}. {{gmraprov|Single Agreement}} '''<br> |
| | '''{{gmraprov|14}}. {{gmraprov|Notices and Other Communications}} '''<br> |
| | '''{{gmraprov|15}}. {{gmraprov|Entire Agreement; Severability}} '''<br> |
| | '''{{gmraprov|16}}. {{gmraprov|Non assignability; Termination}} '''<br> |
| | '''{{gmraprov|17}}. {{gmraprov|Governing Law}} '''<br> |
| | '''{{gmraprov|18}}. {{gmraprov|No Waivers, etc.}} '''<br> |
| | '''{{gmraprov|19}}. {{gmraprov|Waiver of immunity}} '''<br> |
| | '''{{gmraprov|20}}. {{gmraprov|Recording}} '''<br> |
| | '''{{gmraprov|21}}. {{gmraprov|Third Party Rights}} '''<br> |
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| The Bond Market Association
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| New York Washington – London
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| www. bondmarkets.com I S M A
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| International {{gmraprov|Securities}} Market Association
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| Rigistrasse 60, P.O. Box, CH 8033, Zurich
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| www.isma.org
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| 2000 VERSION | | <big>[[2000 Global Master Repurchase Agreement|2000 VERSION TBMA/ISMA GLOBAL MASTER REPURCHASE AGREEMENT]]</big> |
| TBMA/ISMA | | Dated as of: <br> |
| GLOBAL MASTER REPURCHASE AGREEMENT | | Between:<br> |
| Dated as of | | (“'''{{gmraprov|Party A}}'''”) and (“'''{{gmraprov|Party B}}'''”) |
| Between: | | |
| (“{{gmraprov|Party A}}”)
| | {{GMRA 2000 1}} |
| and | | {{GMRA 2000 2}} |
| :(“{{gmraprov|Party B}}”)
| | {{GMRA 2000 3}} |
| {{gmraprov|1}}. {{gmraprov|Applicability}} | | {{GMRA 2000 4}} |
| :(a) From time to time the parties hereto may enter into {{gmraprov|Transaction}}s in which one party, acting through a {{gmraprov|Designated Office}}, (“'''{{gmraprov|Seller}}'''”) agrees to sell to the other, acting through a {{gmraprov|Designated Office}}, (“'''{{gmraprov|Buyer}}'''”) {{gmraprov|Securities}} and financial instruments (“Securities”) (subject to paragraph {{gmraprov|1(c)}}, other than equities and {{gmraprov|Net Paying {{gmraprov|Securities}}}}) against the payment of the purchase price by {{gmraprov|Buyer}} to {{gmraprov|Seller}}, with a simultaneous agreement by {{gmraprov|Buyer}} to sell to {{gmraprov|Seller}} {{gmraprov|Securities}} {{gmraprov|equivalent}} to such {{gmraprov|Securities}} at a date certain or on demand against the payment of the repurchase price by {{gmraprov|Seller}} to {{gmraprov|Buyer}}.
| | {{GMRA 2000 5}} |
| :(b) Each such {{gmraprov|Transaction}} (which may be a repurchase {{gmraprov|Transaction}} (“Repurchase {{gmraprov|Transaction}}”) or a buy and sell back {{gmraprov|Transaction}} (“Buy/Sell Back {{gmraprov|Transaction}}”) shall be referred to herein as a “Transaction” and shall be governed by this {{gmraprov|Agreement}}, including any supplemental terms or conditions contained in Annex I hereto, unless otherwise agreed in writing.
| | {{GMRA 2000 6}} |
| :(c) If this {{gmraprov|Agreement}} may be applied to
| | {{GMRA 2000 7}} |
| :(i) Buy/Sell Back {{gmraprov|Transaction}}s, this shall be specified in Annex I hereto, and the provisions of the Buy/Sell Back Annex shall apply to such Buy/Sell Back {{gmraprov|Transaction}}s;
| | {{GMRA 2000 8}} |
| :(ii) {{gmraprov|Net Paying {{gmraprov|Securities}}}}, this shall be specified in Annex I hereto and the provisions of Annex 1, paragraph {{gmraprov|1(b)}} shall apply to {{gmraprov|Transaction}}s involving {{gmraprov|Net Paying {{gmraprov|Securities}}}}.
| | {{GMRA 2000 9}} |
| :(d) If {{gmraprov|Transaction}}s are to be effected under this {{gmraprov|Agreement}} by either {{gmraprov|Party A}}s an agent, this shall be specified in Annex I hereto, and the provisions of the {{gmraprov|Agency Annex}} shall apply to such {{gmraprov|Agency {{gmraprov|Transaction}}}}s.
| | {{GMRA 2000 10}} |
| {{gmraprov|2}}. {{gmraprov|Definitions}}
| | {{GMRA 2000 11}} |
| :(a) “'''{{gmraprov|Act of Insolvency}}'''” shall occur with respect to any party hereto upon –
| | {{GMRA 2000 12}} |
| :(i) its making a general assignment for the benefit of, entering into a reorganisation, arrangement, or composition with creditors; or
| | {{GMRA 2000 13}} |
| :(ii) its admitting in writing that it is unable to pay its debts as they become due; or
| | {{GMRA 2000 14}} |
| :(iii) its seeking, consenting to or acquiescing in the appointment of any trustee, administrator, receiver or liquidator or analogous officer of it or any material part of its property; or
| | {{GMRA 2000 15}} |
| :(iv) the presentation or filing of a petition in respect of it (other than by the counterparty to this {{gmraprov|Agreement}} in respect of any obligation under this {{gmraprov|Agreement}}) in any court or before any agency alleging or for the bankruptcy, winding up or insolvency of such party (or any analogous proceeding) or seeking any reorganisation, arrangement, composition, re adjustment, administration, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such petition (except in the case of a petition for winding up or any analogous proceeding, in respect of which no such 30 day period shall apply) not having been stayed or dismissed within 30 days of its filing; or
| | {{GMRA 2000 16}} |
| :(v) the appointment of a receiver, administrator, liquidator or trustee or analogous officer of such party or over all or any material part of such party's property; or
| | {{GMRA 2000 17}} |
| :(vi) the convening of any meeting of its creditors for the purposes of considering a voluntary arrangement as referred to in section 3 of the [[Insolvency Act 1986]] (or any analogous proceeding);
| | {{GMRA 2000 18}} |
| :(b) “'''{{gmraprov|Agency {{gmraprov|Transaction}}}}'''”, the meaning specified in paragraph {{gmraprov|1}} of the {{gmraprov|Agency Annex}};
| | {{GMRA 2000 19}} |
| :(c) “'''{{gmraprov|Appropriate Market}}'''”, the meaning specified in paragraph {{gmraprov|10}};
| | {{GMRA 2000 20}} |
| :(d) “'''{{gmraprov|Base Currency}}'''”, the currency indicated in Annex I hereto;
| | {{GMRA 2000 21}} |
| :(e) “'''{{gmraprov|Business Day}}'''”
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| :(i) in relation to the settlement of any {{gmraprov|Transaction}} which is to be settled through {{gmraprov|Clearstream}} or {{gmraprov|Euroclear}}, a day on which {{gmraprov|Clearstream}} or, as the case may be, {{gmraprov|Euroclear}} is open to settle business in the currency in which the {{gmraprov|Purchase Price}} and the {{gmraprov|Repurchase Price}} are denominated;
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| :(ii) in relation to the settlement of any {{gmraprov|Transaction}} which is to be settled through a settlement system other than {{gmraprov|Clearstream}} or {{gmraprov|Euroclear}}, a day on which that settlement system is open to settle such {{gmraprov|Transaction}};
| | {{GMRA 2000 Annex II}} |
| :(iii) in relation to any delivery of {{gmraprov|Securities}} not falling within (i) or (ii) above, a day on which banks are open for business in the place where delivery of the relevant {{gmraprov|Securities}} is to be effected; and
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| :(iv) in relation to any obligation to make a payment not falling within (i) or (ii) above, a day other than a Saturday or a Sunday on which banks are open for business in the principal financial centre of the country of which the currency in which the payment is denominated is the official currency and, if different, in the place where any account designated by the parties for the making or receipt of the payment is situated (or, in the case of a payment in euro, a day on which {{gmraprov|TARGET}} operates);
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| :(f) “'''{{gmraprov|Cash Margin}}'''”, a cash sum paid to {{gmraprov|Buyer}} or {{gmraprov|Seller}} in accordance with paragraph {{gmraprov|4}};
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| :(g) “'''{{gmraprov|Clearstream}}'''”, {{gmraprov|Clearstream}} Banking, societe anonyme, (previously Cedelbank) or any successor thereto;
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| :(h) “'''{{gmraprov|Confirmation}}'''”, the meaning specified in paragraph {{gmraprov|3(b)}};
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| :(i) “'''{{gmraprov|Contractual Currency}}'''”, the meaning specified in paragraph {{gmraprov|7(a)}};
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| :(j) “'''{{gmraprov|Defaulting Party}}'''”, the meaning specified in paragraph {{gmraprov|10}};
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| :(k) “'''{{gmraprov|Default {{gmraprov|Market Value}}}}'''”, the meaning specified in paragraph {{gmraprov|10}};
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| :(l) “'''{{gmraprov|Default Notice}}'''”, a written notice served by the {{gmraprov|non-Defaulting Party}} on the {{gmraprov|Defaulting Party}} under paragraph {{gmraprov|10}} stating that an event shall be treated as an {{gmraprov|Event of Default}} for the purposes of this {{gmraprov|Agreement}};
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| :(m) “'''{{gmraprov|Default Valuation Notice}}'''”, the meaning specified in paragraph {{gmraprov|10}};
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| :(n) “'''{{gmraprov|Default Valuation Time}}'''”, the meaning specified in paragraph {{gmraprov|10}};
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| :(o) “'''{{gmraprov|Deliverable {{gmraprov|Securities}}}}'''”, the meaning specified in paragraph {{gmraprov|10}};
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| :(p) “'''{{gmraprov|Designated Office}}'''”, with respect to a party, a branch or office of that party which is specified as such in Annex I hereto or such other branch or office as may be agreed to by the parties;
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| :(q) “'''{{gmraprov|Distributions}}'''”, the meaning specified in sub paragraph {{gmraprov|2(w)}} below;
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| :(r) “'''{{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}}'''”, {{gmraprov|Securities}} {{gmraprov|equivalent}} to {{gmraprov|Securities}} previously transferred as {{gmraprov|Margin {{gmraprov|Securities}}}};
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| :(s) “'''{{gmraprov|Equivalent {{gmraprov|Securities}}}}'''”, with respect to a {{gmraprov|Transaction}}, {{gmraprov|Securities}} {{gmraprov|equivalent}} to {{gmraprov|Purchased {{gmraprov|Securities}}}} under that {{gmraprov|Transaction}}. If and to the extent that such {{gmraprov|Purchased {{gmraprov|Securities}}}} have been re[[deemed]], the expression shall mean a sum of money {{gmraprov|equivalent}} to the proceeds of the redemption;
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| :(t) Securities are “'''{{gmraprov|equivalent}} to” other {{gmraprov|Securities}} for the purposes of this {{gmraprov|Agreement}} if they are: (i) of the same issuer; (ii) part of the same issue; and (iii) of an identical type, nominal value, description and (except where otherwise stated) amount as those other {{gmraprov|Securities}}, provided that
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| :(A) Securities will be {{gmraprov|equivalent}} to other {{gmraprov|Securities}} notwithstanding that those {{gmraprov|Securities}} have been redenominated into euro or that the nominal value of those {{gmraprov|Securities}} has changed in connection with such redenomination; and
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| :(B) where {{gmraprov|Securities}} have been converted, subdivided or consolidated or have become the subject of a takeover or the holders of {{gmraprov|Securities}} have become entitled to receive or acquire other {{gmraprov|Securities}} or other property or the {{gmraprov|Securities}} have become subject to any similar event, the expression “'''{{gmraprov|equivalent}} to” shall mean {{gmraprov|Securities}} {{gmraprov|equivalent}} to (as defined in the provisions of this definition preceding the proviso) the original {{gmraprov|Securities}} together with or replaced by a sum of money or {{gmraprov|Securities}} or other property {{gmraprov|equivalent}} to (as so defined) that receivable by holders of such original {{gmraprov|Securities}} resulting from such event;
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| :(u) “'''{{gmraprov|Euroclear}}'''”, operator of the {{gmraprov|Euroclear}} System or any successor thereto;
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| :(v) “'''{{gmraprov|Event of Default}}'''”, the meaning specified in paragraph {{gmraprov|10}};
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| :(w) “'''{{gmraprov|Income}}'''”, with respect to any Security at any time, all interest, dividends or other {{gmraprov|Distributions}} thereon, but excluding {{gmraprov|Distributions}} which are a payment or repayment of principal in respect of the relevant {{gmraprov|Securities}} (“'''{{gmraprov|Distributions}}'''”);
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| :(x) “'''{{gmraprov|Income}} Payment Date”, with respect to any {{gmraprov|Securities}}, the date on which {{gmraprov|Income}} is paid in respect of such {{gmraprov|Securities}} or, in the case of registered {{gmraprov|Securities}}, the date by reference to which particular registered holders are identified as being entitled to payment of {{gmraprov|Income}};
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| :(y) “'''{{gmraprov|LIBOR}}'''”, in relation to any sum in any currency, the one month London Inter Bank Offered Rate in respect of that currency as quoted on page 3750 on the Bridge Telerate Service (or such other page as may replace page 3750 on that service) as of 11:00 a.m., London time, on the date on which it is to be determined;
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| :(z) “'''{{gmraprov|Margin Ratio}}'''”, with respect to a {{gmraprov|Transaction}}, the {{gmraprov|Market Value}} of the {{gmraprov|Purchased {{gmraprov|Securities}}}} at the time when the {{gmraprov|Transaction}} was entered into divided by the {{gmraprov|Purchase Price}} (and so that, where a {{gmraprov|Transaction}} relates to {{gmraprov|Securities}} of different descriptions and the {{gmraprov|Purchase Price}} is apportioned by the parties among {{gmraprov|Purchased {{gmraprov|Securities}}}} of each such description, a separate {{gmraprov|Margin Ratio}} shall apply in respect of {{gmraprov|Securities}} of each such description), or such other proportion as the parties may agree with respect to that {{gmraprov|Transaction}};
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| :(aa) “'''{{gmraprov|Margin {{gmraprov|Securities}}}}'''”, in relation to a {{gmraprov|Margin Transfer}}, {{gmraprov|Securities}} reasonably acceptable to the party calling for such {{gmraprov|Margin Transfer}};
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| :(bb) “'''{{gmraprov|Margin Transfer}}'''”, any, or any combination of, the payment or repayment of {{gmraprov|Cash Margin}} and the transfer of {{gmraprov|Margin {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}};
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| :(cc) “'''{{gmraprov|Market Value}}'''”, with respect to any {{gmraprov|Securities}} as of any time on any date, the price for such {{gmraprov|Securities}} at such time on such date obtained from a generally recognised source agreed to by the parties (and where different prices are obtained for different delivery dates, the price so obtainable for the earliest available such delivery date) (provided that the price of {{gmraprov|Securities}} that are suspended shall (for the purposes of paragraph {{gmraprov|4}}) be nil unless the parties otherwise agree and (for all other purposes) shall be the price of those {{gmraprov|Securities}} as of close of business on the dealing day in the relevant market last preceding the date of suspension) plus the aggregate amount of {{gmraprov|Income}} which, as of such date, has accrued but not yet been paid in respect of the {{gmraprov|Securities}} to the extent not included in such price as of such date, and for these purposes any sum in a currency other than the {{gmraprov|Contractual Currency}} for the {{gmraprov|Transaction}} in question shall be converted into such {{gmraprov|Contractual Currency}} at the {{gmraprov|Spot Rate}} prevailing at the relevant time;
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| :(dd) “'''{{gmraprov|Net Exposure}}'''”, the meaning specified in paragraph {{gmraprov|4(c)}};
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| :(ee) the “Net Margin” provided to a {{gmraprov|Party A}}t any time, the excess (if any) at that time of (i) the sum of the amount of {{gmraprov|Cash Margin}} paid to that party (including accrued interest on such {{gmraprov|Cash Margin}} which has not been paid to the other party) and the {{gmraprov|Market Value}} of {{gmraprov|Margin {{gmraprov|Securities}}}} transferred to that party under paragraph {{gmraprov|4(a)}} (excluding any {{gmraprov|Cash Margin}} which has been repaid to the other {{gmraprov|Party A}}nd any {{gmraprov|Margin {{gmraprov|Securities}}}} in respect of which {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} have been transferred to the other party) over (ii) the sum of the amount of {{gmraprov|Cash Margin}} paid to the other party (including accrued interest on such {{gmraprov|Cash Margin}} which has not been paid by the other party) and the {{gmraprov|Market Value}} of {{gmraprov|Margin {{gmraprov|Securities}}}} transferred to the other party under paragraph {{gmraprov|4(a)}} (excluding any {{gmraprov|Cash Margin}} which has been repaid by the other {{gmraprov|Party A}}nd any {{gmraprov|Margin {{gmraprov|Securities}}}} in respect of which {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} have been transferred by the other party) and for this purpose any amounts not denominated in the {{gmraprov|Base Currency}} shall be converted into the {{gmraprov|Base Currency}} at the {{gmraprov|Spot Rate}} prevailing at the relevant time;
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| :(ff) “'''{{gmraprov|Net Paying {{gmraprov|Securities}}}}'''”, {{gmraprov|Securities}} which are of a kind such that, were they to be the subject of a {{gmraprov|Transaction}} to which paragraph {{gmraprov|5}} applies, any payment made by {{gmraprov|Buyer}} under paragraph {{gmraprov|5}} would be one in respect of which either {{gmraprov|Buyer}} would or might be required to make a withholding or deduction for or on account of taxes or duties or {{gmraprov|Seller}} might be required to make or account for a payment for or on account of taxes or duties (in each case other than tax on overall net income) by reference to such payment;
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| :(gg) “'''{{gmraprov|Net Value}}'''”, the meaning specified in paragraph {{gmraprov|10}};
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| :(hh) “'''{{gmraprov|New {{gmraprov|Purchased {{gmraprov|Securities}}}}}}'''”, the meaning specified in paragraph {{gmraprov|8(a)}};
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| :(ii) “'''{{gmraprov|Price Differential}}'''”, with respect to any {{gmraprov|Transaction}} as of any date, the aggregate amount obtained by daily application of the {{gmraprov|Pricing Rate}} for such {{gmraprov|Transaction}} to the {{gmraprov|Purchase Price}} for such {{gmraprov|Transaction}} (on a 360 day basis or 365 day basis in accordance with the applicable ISMA convention, unless otherwise agreed between the parties for the {{gmraprov|Transaction}}), for the actual number of days during the period commencing on (and including) the {{gmraprov|Purchase Date}} for such {{gmraprov|Transaction}} and ending on (but excluding) the date of calculation or, if earlier, the {{gmraprov|Repurchase Date}};
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| :(jj) “'''{{gmraprov|Pricing Rate}}'''”, with respect to any {{gmraprov|Transaction}}, the per annum percentage rate for calculation of the {{gmraprov|Price Differential}} agreed to by {{gmraprov|Buyer}} and {{gmraprov|Seller}} in relation to that {{gmraprov|Transaction}};
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| :(kk) “'''{{gmraprov|Purchase Date}}'''”, with respect to any {{gmraprov|Transaction}}, the date on which {{gmraprov|Purchased {{gmraprov|Securities}}}} are to be sold by {{gmraprov|Seller}} to {{gmraprov|Buyer}} in relation to that {{gmraprov|Transaction}};
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| :(ll) “'''{{gmraprov|Purchase Price}}'''”, on the {{gmraprov|Purchase Date}}, the price at which {{gmraprov|Purchased {{gmraprov|Securities}}}} are sold or are to be sold by {{gmraprov|Seller}} to {{gmraprov|Buyer}};
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| :(mm) “'''{{gmraprov|Purchased {{gmraprov|Securities}}}}'''”, with respect to any {{gmraprov|Transaction}}, the {{gmraprov|Securities}} sold or to be sold by {{gmraprov|Seller}} to {{gmraprov|Buyer}} under that {{gmraprov|Transaction}}, and any {{gmraprov|New {{gmraprov|Purchased {{gmraprov|Securities}}}}}} transferred by {{gmraprov|Seller}} to {{gmraprov|Buyer}} under paragraph {{gmraprov|8}} in respect of that {{gmraprov|Transaction}};
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| :(nn) “'''{{gmraprov|Receivable {{gmraprov|Securities}}}}'''”, the meaning specified in paragraph {{gmraprov|10}};
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| :(oo) “'''{{gmraprov|Repurchase Date}}'''”, with respect to any {{gmraprov|Transaction}}, the date on which {{gmraprov|Buyer}} is to sell {{gmraprov|Equivalent {{gmraprov|Securities}}}} to {{gmraprov|Seller}} in relation to that {{gmraprov|Transaction}};
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| :(pp) “'''{{gmraprov|Repurchase Price}}'''”, with respect to any {{gmraprov|Transaction}} and as of any date, the sum of the {{gmraprov|Purchase Price}} and the {{gmraprov|Price Differential}} as of such date;
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| :(qq) “'''{{gmraprov|Special Default Notice}}'''”, the meaning specified in paragraph {{gmraprov|14}};
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| :(rr) “'''{{gmraprov|Spot Rate}}'''”, where an amount in one currency is to be converted into a second currency on any date, unless the parties otherwise agree, the spot rate of exchange quoted by Barclays Bank PLC in the London inter bank market for the sale by it of such second currency against a purchase by it of such first currency;
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| :(ss) “'''{{gmraprov|TARGET}}'''”, the Trans European Automated Real time Gross Settlement Express Transfer System;
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| :(tt) “'''{{gmraprov|Term}}'''”, with respect to any {{gmraprov|Transaction}}, the interval of time commencing with the {{gmraprov|Purchase Date}} and ending with the {{gmraprov|Repurchase Date}};
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| :(uu) “'''{{gmraprov|Termination}}'''”, with respect to any {{gmraprov|Transaction}}, refers to the requirement with respect to such {{gmraprov|Transaction}} for {{gmraprov|Buyer}} to sell {{gmraprov|Equivalent {{gmraprov|Securities}}}} against payment by {{gmraprov|Seller}} of the {{gmraprov|Repurchase Price}} in accordance with paragraph {{gmraprov|3(f)}}, and reference to a {{gmraprov|Transaction}} having a “fixed term” or being “terminable upon demand” shall be construed accordingly;
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| :(vv) “'''{{gmraprov|Transaction Costs}}'''”, the meaning specified in paragraph {{gmraprov|10}};
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| :(ww) “'''{{gmraprov|Transaction Exposure}}'''”, with respect to any {{gmraprov|Transaction}} at any time during the period from the {{gmraprov|Purchase Date}} to the {{gmraprov|Repurchase Date}} (or, if later, the date on which {{gmraprov|Equivalent {{gmraprov|Securities}}}} are delivered to {{gmraprov|Seller}} or the {{gmraprov|Transaction}} is terminated under paragraph {{gmraprov|10(g)}} or {{gmraprov|10(h)}}), the difference between (i) the {{gmraprov|Repurchase Price}} at such time multiplied by the applicable {{gmraprov|Margin Ratio}} (or, where the {{gmraprov|Transaction}} relates to {{gmraprov|Securities}} of more than one description to which different {{gmraprov|Margin Ratio}}s apply, the amount produced by multiplying the {{gmraprov|Repurchase Price}} attributable to {{gmraprov|Equivalent {{gmraprov|Securities}}}} of each such description by the applicable {{gmraprov|Margin Ratio}} and aggregating the resulting amounts, the {{gmraprov|Repurchase Price}} being for this purpose attributed to {{gmraprov|Equivalent {{gmraprov|Securities}}}} of each such description in the same proportions as those in which the {{gmraprov|Purchase Price}} was apportioned among the {{gmraprov|Purchased {{gmraprov|Securities}}}}) and (ii) the {{gmraprov|Market Value}} of {{gmraprov|Equivalent {{gmraprov|Securities}}}} at such time. If (i) is greater than (ii), {{gmraprov|Buyer}} has a {{gmraprov|Transaction Exposure}} for that {{gmraprov|Transaction}} equal to that excess. If (ii) is greater than (i), {{gmraprov|Seller}} has a {{gmraprov|Transaction Exposure}} for that {{gmraprov|Transaction}} equal to that excess; and
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| :(xx) except in paragraphs {{gmraprov|14(b)(i)}} and {{gmraprov|18}}, references in this {{gmraprov|Agreement}} to “written” communications and communications “in writing” include communications made through any electronic system agreed between the parties which is capable of reproducing such communication in hard copy form.
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| {{gmraprov|3}}. {{gmraprov|Initiation; Confirmation; Termination}}
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| :(a) A {{gmraprov|Transaction}} may be entered into orally or in writing at the initiation of either {{gmraprov|Buyer}} or {{gmraprov|Seller}}.
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| :(b) Upon agreeing to enter into a {{gmraprov|Transaction}} hereunder {{gmraprov|Buyer}} or {{gmraprov|Seller}} (or both), as shall have been agreed, shall promptly deliver to the other party written {{gmraprov|Confirmation}} of such {{gmraprov|Transaction}} (a “'''{{gmraprov|Confirmation}}'''”).
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| The {{gmraprov|Confirmation}} shall describe the {{gmraprov|Purchased {{gmraprov|Securities}}}} (including CUSIP or ISIN or other identifying number or numbers, if any), identify {{gmraprov|Buyer}} and {{gmraprov|Seller}} and set forth
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| :(i) the {{gmraprov|Purchase Date}};
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| :(ii) the {{gmraprov|Purchase Price}};
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| :(iii) the {{gmraprov|Repurchase Date}}, unless the {{gmraprov|Transaction}} is to be terminable on demand (in which case the {{gmraprov|Confirmation}} shall state that it is terminable on demand);
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| :(iv) the {{gmraprov|Pricing Rate}} applicable to the {{gmraprov|Transaction}};
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| :(v) in respect of each party the details of the bank account[s] to which payments to be made hereunder are to be credited;
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| :(vi) where the Buy/Sell Back Annex applies, whether the {{gmraprov|Transaction}} is a Repurchase {{gmraprov|Transaction}} or a Buy/Sell Back {{gmraprov|Transaction}};
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| :(vii) where the {{gmraprov|Agency Annex}} applies, whether the {{gmraprov|Transaction}} is an {{gmraprov|Agency {{gmraprov|Transaction}}}} and, if so, the identity of the party which is acting as agent and the name, code or identifier of the Principal; and
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| :(viii) any additional terms or conditions of the {{gmraprov|Transaction}};
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| and may be in the form of Annex 11 hereto or may be in any other form to which the parties agree. The {{gmraprov|Confirmation}} relating to a {{gmraprov|Transaction}} shall, together with this {{gmraprov|Agreement}}, constitute prima facie evidence of the terms agreed between {{gmraprov|Buyer}} and {{gmraprov|Seller}} for that {{gmraprov|Transaction}}, unless objection is made with respect to the {{gmraprov|Confirmation}} promptly after receipt thereof. In the event of any conflict between the terms of such {{gmraprov|Confirmation}} and this {{gmraprov|Agreement}}, the {{gmraprov|Confirmation}} shall prevail in respect of that {{gmraprov|Transaction}} and those terms only.
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| :(c) On the {{gmraprov|Purchase Date}} for a {{gmraprov|Transaction}}, {{gmraprov|Seller}} shall transfer the {{gmraprov|Purchased {{gmraprov|Securities}}}} to {{gmraprov|Buyer}} or its agent against the payment of the {{gmraprov|Purchase Price}} by {{gmraprov|Buyer}}.
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| :(d) {{gmraprov|Termination}} of a {{gmraprov|Transaction}} will be effected, in the case of on demand {{gmraprov|Transaction}}s, on the date specified for {{gmraprov|Termination}} in such demand, and, in the case of fixed term {{gmraprov|Transaction}}s, on the date fixed for {{gmraprov|Termination}}.
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| :(e) In the case of on demand {{gmraprov|Transaction}}s, demand for {{gmraprov|Termination}} shall be made by {{gmraprov|Buyer}} or {{gmraprov|Seller}}, by telephone or otherwise, and shall provide for {{gmraprov|Termination}} to occur after not less than the minimum period as is customarily required for the settlement or delivery of money or {{gmraprov|Equivalent {{gmraprov|Securities}}}} of the relevant kind.
| |
| :(f) On the {{gmraprov|Repurchase Date}}, {{gmraprov|Buyer}} shall transfer to {{gmraprov|Seller}} or its agent Equivalent
| |
| Securities against the payment of the {{gmraprov|Repurchase Price}} by {{gmraprov|Seller}} (less any amount then payable and unpaid by {{gmraprov|Buyer}} to {{gmraprov|Seller}} pursuant to paragraph {{gmraprov|5}}).
| |
| {{gmraprov|4}}. {{gmraprov|Margin Maintenance}}
| |
| :(a) If at any time either party has a {{gmraprov|Net Exposure}} in respect of the other party it may by notice to the other party require the other party to make a {{gmraprov|Margin Transfer}} to it of an aggregate amount or value at least equal to that {{gmraprov|Net Exposure}}.
| |
| :(b) A notice under sub paragraph {{gmraprov|4(a)}} above may be given orally or in writing.
| |
| :(c) For the purposes of this {{gmraprov|Agreement}} a party has a {{gmraprov|Net Exposure}} in respect of the other party if the aggregate of all the {{gmraprov|first party}}'s {{gmraprov|Transaction Exposure}}s plus any amount payable to the {{gmraprov|first party}} under paragraph {{gmraprov|5}} but unpaid less the amount of any Net Margin provided to the {{gmraprov|first party}} exceeds the aggregate of all the other party's {{gmraprov|Transaction Exposure}}s plus any amount payable to the other party under paragraph {{gmraprov|5}} but unpaid less the amount of any Net Margin provided to the other party; and the amount of the {{gmraprov|Net Exposure}} is the amount of the excess. For this purpose any amounts not denominated in the {{gmraprov|Base Currency}} shall be converted into the {{gmraprov|Base Currency}} at the {{gmraprov|Spot Rate}} prevailing at the relevant time.
| |
| :(d) To the extent that a party calling for a {{gmraprov|Margin Transfer}} has previously paid {{gmraprov|Cash Margin}} which has not been repaid or delivered {{gmraprov|Margin {{gmraprov|Securities}}}} in respect of which {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} have not been delivered to it, that party shall be entitled to require that such {{gmraprov|Margin Transfer}} be satisfied first by the repayment of such {{gmraprov|Cash Margin}} or the delivery of {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} but, subject to this, the composition of a {{gmraprov|Margin Transfer}} shall be at the option of the party making such {{gmraprov|Margin Transfer}}.
| |
| :(e) Any {{gmraprov|Cash Margin}} transferred shall be in the {{gmraprov|Base Currency}} or such other currency as the parties may agree.
| |
| :(f) A payment of {{gmraprov|Cash Margin}} shall give rise to a debt owing from the party receiving such payment to the party making such payment. Such debt shall bear interest at such rate, payable at such times, as may be specified in Annex I hereto in respect of the relevant currency or otherwise agreed between the parties, and shall be repayable subject to the terms of this {{gmraprov|Agreement}}.
| |
| :(g) Where {{gmraprov|Seller}} or {{gmraprov|Buyer}} becomes obliged under sub paragraph {{gmraprov|4(a)}} above to make a {{gmraprov|Margin Transfer}}, it shall transfer {{gmraprov|Cash Margin}} or {{gmraprov|Margin {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} within the minimum period specified in Annex I hereto or, if no period is there specified, such minimum period as is customarily required for the settlement or delivery of money, {{gmraprov|Margin {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} of the relevant kind.
| |
| :(h) The parties may agree that, with respect to any {{gmraprov|Transaction}}, the provisions of sub¬paragraphs {{gmraprov|4(a)}} to {{gmraprov|4(g)}} above shall not apply but instead that margin may be provided separately in respect of that {{gmraprov|Transaction}} in which case
| |
| :(i) that {{gmraprov|Transaction}} shall not be taken into account when calculating whether either party has a {{gmraprov|Net Exposure}};
| |
| :(ii) margin shall be provided in respect of that {{gmraprov|Transaction}} in such manner as the parties may agree; and
| |
| :(iii) margin provided in respect of that {{gmraprov|Transaction}} shall not be taken into account for the purposes of sub paragraphs {{gmraprov|4(a)}} to {{gmraprov|4(g)}} above.
| |
| :(i) The parties may agree that any {{gmraprov|Net Exposure}} which may arise shall be eliminated not by {{gmraprov|Margin Transfer}}s under the preceding provisions of this paragraph but by the repricing of {{gmraprov|Transaction}}s under sub paragraph {{gmraprov|4(j)}} below, the adjustment of {{gmraprov|Transaction}}s under sub paragraph {{gmraprov|4(k)}} below or a combination of both these methods.
| |
| :(j) Where the parties agree that a {{gmraprov|Transaction}} is to be repriced under this sub paragraph, such repricing shall be effected as follows
| |
| :(i) the {{gmraprov|Repurchase Date}} under the relevant {{gmraprov|Transaction}} (the “original {{gmraprov|Transaction}}”) shall be [[deemed]] to occur on the date on which the repricing is to be effected (the “Repricing Date”);
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| :(ii) the parties shall be [[deemed]] to have entered into a new {{gmraprov|Transaction}} (the “Repriced {{gmraprov|Transaction}}”) on the terms set out in (iii) to (vi) below;
| |
| :(iii) the {{gmraprov|Purchased {{gmraprov|Securities}}}} under the Repriced {{gmraprov|Transaction}} shall be {{gmraprov|Securities}} {{gmraprov|equivalent}} to the {{gmraprov|Purchased {{gmraprov|Securities}}}} under the Original {{gmraprov|Transaction}};
| |
| :(iv) the {{gmraprov|Purchase Date}} under the Repriced {{gmraprov|Transaction}} shall be the Repricing Date;
| |
| :(v) the {{gmraprov|Purchase Price}} under the Repriced {{gmraprov|Transaction}} shall be such amount as shall, when multiplied by the {{gmraprov|Margin Ratio}} applicable to the Original {{gmraprov|Transaction}}, be equal to the {{gmraprov|Market Value}} of such {{gmraprov|Securities}} on the Repricing Date;
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| :(vi) the {{gmraprov|Repurchase Date}}, the {{gmraprov|Pricing Rate}}, the {{gmraprov|Margin Ratio}} and, subject as aforesaid, the other terms of the Repriced {{gmraprov|Transaction}} shall be identical to those of the Original {{gmraprov|Transaction}};
| |
| :(vii) the obligations of the parties with respect to the delivery of the {{gmraprov|Purchased {{gmraprov|Securities}}}} and the payment of the {{gmraprov|Purchase Price}} under the Repriced {{gmraprov|Transaction}} shall be set off against their obligations with respect to the delivery of {{gmraprov|Equivalent {{gmraprov|Securities}}}} and payment of the {{gmraprov|Repurchase Price}} under the Original {{gmraprov|Transaction}} and accordingly only a net cash sum shall be paid by one party to the other. Such net cash sum shall be paid within the period specified in sub paragraph {{gmraprov|4(g)}} above.
| |
| :(k) The adjustment of a {{gmraprov|Transaction}} (the “Original {{gmraprov|Transaction}}”) under this sub paragraph shall be effected by the parties agreeing that on the date on which the adjustment is to be made (the “Adjustment Date”) the Original {{gmraprov|Transaction}} shall be terminated and they shall enter into a new {{gmraprov|Transaction}} (the “Replacement {{gmraprov|Transaction}}”) in accordance with the following provisions
| |
| :(i) the Original {{gmraprov|Transaction}} shall be terminated on the Adjustment Date on such terms as the parties shall agree on or before the Adjustment Date;
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| :(ii) the {{gmraprov|Purchased {{gmraprov|Securities}}}} under the Replacement {{gmraprov|Transaction}} shall be such {{gmraprov|Securities}} as the parties shall agree on or before the Adjustment Date (being {{gmraprov|Securities}} the aggregate {{gmraprov|Market Value}} of which at the Adjustment Date is substantially equal to the {{gmraprov|Repurchase Price}} under the Original {{gmraprov|Transaction}} at the Adjustment Date multiplied by the {{gmraprov|Margin Ratio}} applicable to the Original {{gmraprov|Transaction}});
| |
| :(iii) the {{gmraprov|Purchase Date}} under the Replacement {{gmraprov|Transaction}} shall be the Adjustment Date;
| |
| :(iv) the other terms of the Replacement {{gmraprov|Transaction}} shall be such as the parties shall agree on or before the Adjustment Date; and
| |
| :(v) the obligations of the parties with respect to payment and delivery of {{gmraprov|Securities}} on the Adjustment Date under the Original {{gmraprov|Transaction}} and the Replacement {{gmraprov|Transaction}} shall be settled in accordance with paragraph {{gmraprov|6}} within the minimum period specified in sub paragraph {{gmraprov|(g) above.
| |
| {{gmraprov|5}}. {{gmraprov|Income Payments}}
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| Unless otherwise agreed
| |
| :(i) where the {{gmraprov|Term}} of a particular {{gmraprov|Transaction}} extends over an {{gmraprov|Income}} Payment Date in respect of any {{gmraprov|Securities}} subject to that {{gmraprov|Transaction}}, {{gmraprov|Buyer}} shall on the date such {{gmraprov|Income}} is paid by the issuer transfer to or credit to the account of {{gmraprov|Seller}} an amount equal to (and in the same currency as) the amount paid by the issuer;
| |
| :(ii) where {{gmraprov|Margin {{gmraprov|Securities}}}} are transferred from one party (“the {{gmraprov|first party}}”) to the other party (“the second party”) and an {{gmraprov|Income}} Payment Date in respect of such {{gmraprov|Securities}} occurs before {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} are transferred by the second party to the {{gmraprov|first party}}, the second party shall on the date such {{gmraprov|Income}} is paid by the issuer transfer to or credit to the account of the {{gmraprov|first party}} an amount equal to (and in the same currency as) the amount paid by the issuer;
| |
| and for the avoidance of doubt references in this paragraph to the amount of any {{gmraprov|Income}} paid by the issuer of any {{gmraprov|Securities}} shall be to an amount paid without any withholding or deduction for or on account of taxes or duties notwithstanding that a payment of such {{gmraprov|Income}} made in certain circumstances may be subject to such a withholding or deduction.
| |
| {{gmraprov|6}}. {{gmraprov|Payment and Transfer}}
| |
| :(a) Unless otherwise agreed, all money paid hereunder shall be in immediately available freely convertible funds of the relevant currency. All {{gmraprov|Securities}} to be transferred hereunder (i) shall be in suitable form for transfer and shall be accompanied by duly executed instruments of transfer or assignment in blank (where required for transfer) and such other documentation as the transferee may reasonably request, or (ii) shall be transferred through the book entry system of {{gmraprov|Euroclear}} or {{gmraprov|Clearstream}}, or (iii) shall be transferred through any other agreed {{gmraprov|Securities}} clearance system or (iv) shall be transferred by any other method mutually acceptable to {{gmraprov|Seller}} and {{gmraprov|Buyer}}.
| |
| :(b) Unless otherwise agreed, all money payable by one party to the other in respect of any {{gmraprov|Transaction}} shall be paid free and clear of, and without withholding or deduction for, any taxes or duties of whatsoever nature imposed, levied, collected, withheld or assessed by any authority having power to tax, unless the withholding or deduction of such taxes or duties is required by law. In that event, unless otherwise agreed, the paying party shall pay such additional amounts as will result in the net amounts receivable by the other party (after taking account of such withholding or deduction) being equal to such amounts as would have been received by it had no such taxes or duties been required to be withheld or deducted.
| |
| :(c) Unless otherwise agreed in writing between the parties, under each {{gmraprov|Transaction}} transfer of {{gmraprov|Purchased {{gmraprov|Securities}}}} by {{gmraprov|Seller}} and payment of {{gmraprov|Purchase Price}} by {{gmraprov|Buyer}} against the transfer of such {{gmraprov|Purchased {{gmraprov|Securities}}}} shall be made simultaneously and transfer of {{gmraprov|Equivalent {{gmraprov|Securities}}}} by {{gmraprov|Buyer}} and payment of {{gmraprov|Repurchase Price}} payable by {{gmraprov|Seller}} against the transfer of such {{gmraprov|Equivalent {{gmraprov|Securities}}}} shall be made simultaneously.
| |
| :(d) Subject to and without prejudice to the provisions of sub paragraph {{gmraprov|6(c)}}, either party may from time to time in accordance with market practice and in recognition of the practical difficulties in arranging simultaneous delivery of {{gmraprov|Securities}} and money waive in relation to any {{gmraprov|Transaction}} its rights under this {{gmraprov|Agreement}} to receive simultaneous transfer [[and/or]] payment provided that transfer [[and/or]] payment shall, notwithstanding such waiver, be made on the same day and provided also that no such waiver in respect of one {{gmraprov|Transaction}} shall affect or bind it in respect of any other {{gmraprov|Transaction}}.
| |
| :(e) The parties shall execute and deliver all necessary documents and take all necessary steps to procure that all right, title and interest in any {{gmraprov|Purchased {{gmraprov|Securities}}}}, any {{gmraprov|Equivalent {{gmraprov|Securities}}}}, any {{gmraprov|Margin {{gmraprov|Securities}}}} and any {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} shall pass to the party to which transfer is being made upon transfer of the same in accordance with this {{gmraprov|Agreement}}, free from all liens, claims, charges and encumbrances.
| |
| :(f) Notwithstanding the use of expressions such as “'''{{gmraprov|Repurchase Date}}'''”, “'''{{gmraprov|Repurchase Price}}'''”, “margin”, “Net Margin”, “'''{{gmraprov|Margin Ratio}}'''” and “substitution”, which are used to reflect terminology used in the market for {{gmraprov|Transaction}}s of the kind provided for in this {{gmraprov|Agreement}}, all right, title and interest in and to {{gmraprov|Securities}} and money transferred or paid under this {{gmraprov|Agreement}} shall pass to the transferee upon transfer or payment, the obligation of the party receiving {{gmraprov|Purchased {{gmraprov|Securities}}}} or {{gmraprov|Margin {{gmraprov|Securities}}}} being an obligation to transfer {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}}.
| |
| :(g) Time shall be of the essence in this {{gmraprov|Agreement}}.
| |
| :(h) Subject to paragraph {{gmraprov|10}}, all amounts in the same currency payable by each party to the other under any {{gmraprov|Transaction}} or otherwise under this {{gmraprov|Agreement}} on the same date shall be combined in a single calculation of a net sum payable by one party to the other and the obligation to pay that sum shall be the only obligation of either party in respect of those amounts.
| |
| :(i) Subject to paragraph {{gmraprov|10}}, all {{gmraprov|Securities}} of the same issue, denomination, currency and series, transferable by each party to the other under any {{gmraprov|Transaction}} or hereunder on the same date shall be combined in a single calculation of a net quantity of {{gmraprov|Securities}} transferable by one party to the other and the obligation to transfer the net quantity of {{gmraprov|Securities}} shall be the only obligation of either party in respect of the {{gmraprov|Securities}} so transferable and receivable.
| |
| :(j) If the parties have specified in Annex I hereto that this paragraph 6(j)}} shall apply, each obligation of a party under this {{gmraprov|Agreement}} (other than an obligation arising under paragraph {{gmraprov|10}}) is subject to the condition precedent that none of those events specified in paragraph {{gmraprov|10(a)}} which are identified in Annex I hereto for the purposes of this paragraph 6(j)}} (being events which, upon the serving of a {{gmraprov|Default Notice}}, would be an {{gmraprov|Event of Default}} with respect to the other party) shall have occurred and be continuing with respect to the other party.
| |
| {{gmraprov|7}}. {{gmraprov|Contractual Currency}}
| |
| :(a) All the payments made in respect of the {{gmraprov|Purchase Price}} or the {{gmraprov|Repurchase Price}} of any {{gmraprov|Transaction}} shall be made in the currency of the {{gmraprov|Purchase Price}} (the “'''{{gmraprov|Contractual Currency}}'''”) save as provided in paragraph {{gmraprov|10(c)(ii)}}. Notwithstanding the foregoing, the payee of any money may, at its option, accept tender thereof in any other currency, provided, however, that, to the extent permitted by applicable law, the obligation of the payer to pay such money will be discharged only to the extent of the amount of the {{gmraprov|Contractual Currency}} that such payee may, consistent with normal banking procedures, purchase with such other currency (after deduction of any premium and costs of exchange) for delivery within the customary delivery period for spot {{gmraprov|Transaction}}s in respect of the relevant currency.
| |
| :(b) If for any reason the amount in the {{gmraprov|Contractual Currency}} received by a party, including amounts received after conversion of any recovery under any judgment or order expressed in a currency other than the {{gmraprov|Contractual Currency}}, falls short of the amount in the {{gmraprov|Contractual Currency}} due and payable, the party required to make the payment will, as a separate and independent obligation, to the extent permitted by applicable law, immediately transfer such additional amount in the {{gmraprov|Contractual Currency}} as may be necessary to compensate for the shortfall.
| |
| :(c) If for any reason the amount in the {{gmraprov|Contractual Currency}} received by a party exceeds the amount of the {{gmraprov|Contractual Currency}} due and payable, the party receiving the transfer will refund promptly the amount of such excess.
| |
| {{gmraprov|8}}. {{gmraprov|Substitution}}
| |
| :(a) A {{gmraprov|Transaction}} may at any time between the {{gmraprov|Purchase Date}} and {{gmraprov|Repurchase Date}}, if {{gmraprov|Seller}} so requests and {{gmraprov|Buyer}} so agrees, be varied by the transfer by {{gmraprov|Buyer}} to {{gmraprov|Seller}} of {{gmraprov|Securities}} {{gmraprov|equivalent}} to the {{gmraprov|Purchased {{gmraprov|Securities}}}}, or to such of the {{gmraprov|Purchased {{gmraprov|Securities}}}} as shall be agreed, in exchange for the transfer by {{gmraprov|Seller}} to {{gmraprov|Buyer}} of other {{gmraprov|Securities}} of such amount and description as shall be agreed (“'''{{gmraprov|New {{gmraprov|Purchased {{gmraprov|Securities}}}}}}'''”) (being {{gmraprov|Securities}} having a {{gmraprov|Market Value}} at the date of the variation at least equal to the {{gmraprov|Market Value}} of the {{gmraprov|Equivalent {{gmraprov|Securities}}}} transferred to {{gmraprov|Seller}}).
| |
| :(b) Any variation under sub paragraph {{gmraprov|8(a)}} above shall be effected, subject to paragraph {{gmraprov|6(d), by the simultaneous transfer of the {{gmraprov|Equivalent {{gmraprov|Securities}}}} and {{gmraprov|New {{gmraprov|Purchased {{gmraprov|Securities}}}}}} concerned.
| |
| :(c) A {{gmraprov|Transaction}} which is varied under sub paragraph {{gmraprov|8(a)}} above shall thereafter continue in effect as though the {{gmraprov|Purchased {{gmraprov|Securities}}}} under that {{gmraprov|Transaction}} consisted of or included the {{gmraprov|New {{gmraprov|Purchased {{gmraprov|Securities}}}}}} instead of the {{gmraprov|Securities}} in respect of which {{gmraprov|Equivalent {{gmraprov|Securities}}}} have been transferred to {{gmraprov|Seller}}.
| |
| :(d) Where either party has transferred {{gmraprov|Margin {{gmraprov|Securities}}}} to the other party it may at any time before {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} are transferred to it under paragraph {{gmraprov|4}} request the other party to transfer {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} to it in exchange for the transfer to the other party of new {{gmraprov|Margin {{gmraprov|Securities}}}} having a {{gmraprov|Market Value}} at the time of transfer at least equal to that of such {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}}. If the other {{gmraprov|Party A}}grees to the request, the exchange shall be effected, subject to paragraph {{gmraprov|6(d)}}, by the simultaneous transfer of the {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} and new {{gmraprov|Margin {{gmraprov|Securities}}}} concerned. Where either or both of such transfers is or are effected through a settlement system in circumstances which under the rules and procedures of that settlement system give rise to a payment by or for the account of one party to or for the account of the other party, the parties shall cause such payment or payments to be made outside that settlement system, for value the same day as the payments made through that settlement system, as shall ensure that the exchange of {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} and new {{gmraprov|Margin {{gmraprov|Securities}}}} effected under this sub paragraph does not give rise to any net payment of cash by either party to the other.
| |
| {{gmraprov|9}}. {{gmraprov|Representations}}
| |
| Each party represents and warrants to the other that
| |
| :(a) it is duly authorised to execute and deliver this {{gmraprov|Agreement}}, to enter into the {{gmraprov|Transaction}}s contemplated hereunder and to perform its obligations hereunder and thereunder and has taken all necessary action to authorise such execution, delivery and performance;
| |
| :(b) it will engage in this {{gmraprov|Agreement}} and the {{gmraprov|Transaction}}s contemplated hereunder (other than {{gmraprov|Agency {{gmraprov|Transaction}}}}s) as principal;
| |
| :(c) the person signing this {{gmraprov|Agreement}} on its behalf is, and any person representing it in entering into a {{gmraprov|Transaction}} will be, duly authorised to do so on its behalf;
| |
| :(d) it has obtained all authorisations of any governmental or regulatory body required in connection with this {{gmraprov|Agreement}} and the {{gmraprov|Transaction}}s contemplated hereunder and such authorisations are in full force and effect;
| |
| :(e) the execution, delivery and performance of this {{gmraprov|Agreement}} and the {{gmraprov|Transaction}}s contemplated hereunder will not violate any law, ordinance, charter, by law or rule applicable to it or any agreement by which it is bound or by which any of its assets are affected;
| |
| :(f) it has satisfied itself and will continue to satisfy itself as to the tax implications of the {{gmraprov|Transaction}}s contemplated hereunder;
| |
| :(g) in connection with this {{gmraprov|Agreement}} and each {{gmraprov|Transaction}}
| |
| :(i) unless there is a written agreement with the other party to the contrary, it is not relying on any advice (whether written or oral) of the other party, other than the representations expressly set out in this {{gmraprov|Agreement}};
| |
| :(ii) it has made and will make its own decisions regarding the entering into of any {{gmraprov|Transaction}} based upon its own judgment and upon advice from such professional advisers as it has [[deemed]] it necessary to consult;
| |
| :(iii) it understands the terms, conditions and risks of each {{gmraprov|Transaction}} and is willing to assume (financially and otherwise) those risks; and
| |
| :(h) at the time of transfer to the other party of any {{gmraprov|Securities}} it will have the full and unqualified right to make such transfer and that upon such transfer of {{gmraprov|Securities}} the other party will receive all right, title and interest in and to those {{gmraprov|Securities}} free of any lien, claim, charge or encumbrance.
| |
| On the date on which any {{gmraprov|Transaction}} is entered into pursuant hereto, and on each day on which {{gmraprov|Securities}}, {{gmraprov|Equivalent {{gmraprov|Securities}}}}, {{gmraprov|Margin {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} are to be transferred under any {{gmraprov|Transaction}}, {{gmraprov|Buyer}} and {{gmraprov|Seller}} shall each be [[deemed]] to repeat all the foregoing representations. For the avoidance of doubt and notwithstanding any arrangements which {{gmraprov|Seller}} or {{gmraprov|Buyer}} may have with any third party, each party will be liable as a principal for its obligations under this {{gmraprov|Agreement}} and each {{gmraprov|Transaction}}.
| |
| {{gmraprov|10}}. {{gmraprov|Events of Default}}
| |
| :(a) If any of the following events (each an “'''{{gmraprov|Event of Default}}'''”) occurs in relation to either party (the “Defaulting Party”, the other {{gmraprov|Party B}}eing the “non {{gmraprov|Defaulting Party}}'''”) whether acting as {{gmraprov|Seller}} or {{gmraprov|Buyer}}
| |
| :(i) {{gmraprov|Buyer}} fails to pay the {{gmraprov|Purchase Price}} upon the applicable {{gmraprov|Purchase Date}} or {{gmraprov|Seller}} fails to pay the {{gmraprov|Repurchase Price}} upon the applicable {{gmraprov|Repurchase Date}}, and the {{gmraprov|non-Defaulting Party}} serves a {{gmraprov|Default Notice}} on the {{gmraprov|Defaulting Party}}; or
| |
| :(ii) if the parties have specified in Annex I hereto that this sub-paragraph shall apply, {{gmraprov|Seller}} fails to deliver {{gmraprov|Purchased {{gmraprov|Securities}}}} on the {{gmraprov|Purchase Date}} or {{gmraprov|Buyer}} fails to deliver Equivalent {{gmraprov|Securities}} on the {{gmraprov|Repurchase Date}}, and the {{gmraprov|non-Defaulting Party}} serves a {{gmraprov|Default Notice}} on the {{gmraprov|Defaulting Party}}; or
| |
| :(iii) {{gmraprov|Seller}} or {{gmraprov|Buyer}} fails to pay when due any sum payable under sub paragraph {{gmraprov|10(g)}} or {{gmraprov|10(h)}} below, and the {{gmraprov|non-Defaulting Party}} serves a {{gmraprov|Default Notice}} on the {{gmraprov|Defaulting Party}}; or
| |
| :(iv) {{gmraprov|Seller}} or {{gmraprov|Buyer}} fails to comply with paragraph {{gmraprov|4}} and the {{gmraprov|non-Defaulting Party}} serves a {{gmraprov|Default Notice}} on the {{gmraprov|Defaulting Party}}; or
| |
| :(v) {{gmraprov|Seller}} or {{gmraprov|Buyer}} fails to comply with paragraph {{gmraprov|5}} and the {{gmraprov|non-Defaulting Party}} serves a {{gmraprov|Default Notice}} on the {{gmraprov|Defaulting Party}}; or
| |
| :(vi) an {{gmraprov|Act of Insolvency}} occurs with respect to {{gmraprov|Seller}} or {{gmraprov|Buyer}} and (except in the case of an {{gmraprov|Act of Insolvency}} which is the presentation of a petition for winding up or any analogous proceeding or the appointment of a liquidator or analogous officer of the {{gmraprov|Defaulting Party}} in which case no such notice shall be required) the {{gmraprov|non-Defaulting Party}} serves a {{gmraprov|Default Notice}} on the {{gmraprov|Defaulting Party}}; or
| |
| :(vii) any representations made by {{gmraprov|Seller}} or {{gmraprov|Buyer}} are incorrect or untrue in any material respect when made or repeated or [[deemed]] to have been made or repeated, and the {{gmraprov|non-Defaulting Party}} serves a {{gmraprov|Default Notice}} on the {{gmraprov|Defaulting Party}}; or
| |
| :(viii) {{gmraprov|Seller}} or {{gmraprov|Buyer}} admits to the other that it is unable to, or intends not to, perform any of its obligations hereunder [[and/or]] in respect of any {{gmraprov|Transaction}} and the {{gmraprov|non-Defaulting Party}} serves a {{gmraprov|Default Notice}} on the {{gmraprov|Defaulting Party}}; or
| |
| :(ix) {{gmraprov|Seller}} or {{gmraprov|Buyer}} is suspended or expelled from membership of or participation in any {{gmraprov|Securities}} exchange or association or other self regulating organisation, or suspended from dealing in {{gmraprov|Securities}} by any government agency, or any of the assets of either {{gmraprov|Seller}} or {{gmraprov|Buyer}} or the assets of investors held by, or to the order of, {{gmraprov|Seller}} or {{gmraprov|Buyer}} are transferred or ordered to be transferred to a trustee by a regulatory authority pursuant to any {{gmraprov|Securities}} regulating legislation and the {{gmraprov|non-Defaulting Party}} serves a {{gmraprov|Default Notice}} on the {{gmraprov|Defaulting Party}}; or
| |
| :(x) {{gmraprov|Seller}} or {{gmraprov|Buyer}} fails to perform any other of its obligations hereunder and does not remedy such failure within 30 days after notice is given by the {{gmraprov|non-Defaulting Party}} requiring it to do so, and the {{gmraprov|non-Defaulting Party}} serves a {{gmraprov|Default Notice}} on the {{gmraprov|Defaulting Party}}; then sub paragraphs (b) to (f) below shall apply.
| |
| :(b) The {{gmraprov|Repurchase Date}} for each {{gmraprov|Transaction}} hereunder shall be [[deemed]] immediately to occur and, subject to the following provisions, all {{gmraprov|Cash Margin}} (including interest accrued) shall be immediately repayable and {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} shall be immediately deliverable (and so that, where this sub paragraph applies, performance of the respective obligations of the parties with respect to the delivery of {{gmraprov|Securities}}, the payment of the {{gmraprov|Repurchase Price}}s for any {{gmraprov|Equivalent {{gmraprov|Securities}}}} and the repayment of any {{gmraprov|Cash Margin}} shall be effected only in accordance with the provisions of sub paragraph {{gmraprov|10(c)}} below).
| |
| :(i) The {{gmraprov|Default {{gmraprov|Market Value}}}}s of the {{gmraprov|Equivalent {{gmraprov|Securities}}}} and any {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} to be transferred, the amount of any {{gmraprov|Cash Margin}} (including the amount of interest accrued) to be transferred and the {{gmraprov|Repurchase Price}}s to be paid by each party shall be established by the {{gmraprov|non-Defaulting Party}} for all {{gmraprov|Transaction}}s as at the {{gmraprov|Repurchase Date}}; and
| |
| :(ii) on the basis of the sums so established, an account shall be taken (as at the {{gmraprov|Repurchase Date}}) of what is due from each party to the other under this {{gmraprov|Agreement}} (on the basis that each party's claim against the other in respect of the transfer to it of {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} under this {{gmraprov|Agreement}} equals the {{gmraprov|Default {{gmraprov|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 {{gmraprov|Business Day}}. For the purposes of this calculation, all sums not denominated in the {{gmraprov|Base Currency}} shall be converted into the {{gmraprov|Base Currency}} on the relevant date at the {{gmraprov|Spot Rate}} prevailing at the relevant time.
| |
| :(d) For the purposes of this {{gmraprov|Agreement}}, the “'''{{gmraprov|Default {{gmraprov|Market Value}}}}'''” of any {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} shall be determined in accordance with sub paragraph {{gmraprov|(e) below, and for this purpose
| |
| :(i) the “'''{{gmraprov|Appropriate Market}}'''” means, in relation to {{gmraprov|Securities}} of any description, the market which is the most {{gmraprov|Appropriate Market}} for {{gmraprov|Securities}} of that description, as determined by the non {{gmraprov|Defaulting Party}};
| |
| :(ii) the “'''{{gmraprov|Default Valuation Time}}'''” means, in relation to an {{gmraprov|Event of Default}}, the close of business in the {{gmraprov|Appropriate Market}} on the fifth dealing day after the day on which that {{gmraprov|Event of Default}} occurs or, where that {{gmraprov|Event of Default}} is the occurrence of an {{gmraprov|Act of Insolvency}} in respect of which under paragraph {{gmraprov|10(a)}} no notice is required from the {{gmraprov|non-Defaulting Party}} in order for such event to constitute an {{gmraprov|Event of Default}}, the close of business on the fifth dealing day after the day on which the {{gmraprov|non-Defaulting Party}} first became aware of the occurrence of such {{gmraprov|Event of Default}};
| |
| :(iii) “'''{{gmraprov|Deliverable {{gmraprov|Securities}}}}'''” means {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} to be delivered by the {{gmraprov|Defaulting Party}};
| |
| :(iv) “'''{{gmraprov|Net Value}}'''” means at any time, in relation to any {{gmraprov|Deliverable {{gmraprov|Securities}}}} or {{gmraprov|Receivable {{gmraprov|Securities}}}}, the amount which, in the reasonable opinion of the non {{gmraprov|Defaulting Party}}, represents their fair market value, having regard to such pricing sources and methods (which may include, [[without limitation]], available prices for {{gmraprov|Securities}} with similar maturities, terms and credit characteristics as the relevant {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}}) as the {{gmraprov|non-Defaulting Party}} considers appropriate, less, in the case of {{gmraprov|Receivable {{gmraprov|Securities}}}}, or plus, on the case of {{gmraprov|Deliverable {{gmraprov|Securities}}}}, all {{gmraprov|Transaction Costs}} which would be incurred in connection with the purchase or sale of such {{gmraprov|Securities}};
| |
| :(v) “'''{{gmraprov|Receivable {{gmraprov|Securities}}}}'''” means {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} to be delivered to the {{gmraprov|Defaulting Party}}; and
| |
| :(vi) “'''{{gmraprov|Transaction Costs}}'''” in relation to any {{gmraprov|Transaction}} contemplated in paragraph {{gmraprov|10(d)}} or {{gmraprov|10(e)}} means the reasonable costs, commission, fees and expenses (including any mark up or mark down) that would be incurred in connection with the purchase of {{gmraprov|Deliverable {{gmraprov|Securities}}}} or sale of {{gmraprov|Receivable {{gmraprov|Securities}}}}, calculated on the assumption that the aggregate thereof is the least that could reasonably be expected to be paid in order to carry out the {{gmraprov|Transaction}};
| |
| :(e) (i) If between the occurrence of the relevant {{gmraprov|Event of Default}} and the {{gmraprov|Default Valuation Time}} the {{gmraprov|non-Defaulting Party}} gives to the {{gmraprov|Defaulting Party}} a written notice (a “'''{{gmraprov|Default Valuation Notice}}'''”) which
| |
| :(A) states that, since the occurrence of the relevant {{gmraprov|Event of Default}}, the {{gmraprov|non-Defaulting Party}} has sold, in the case of {{gmraprov|Receivable {{gmraprov|Securities}}}}, or purchased, in the case of {{gmraprov|Deliverable {{gmraprov|Securities}}}}, {{gmraprov|Securities}} which form part of the same issue and are of an identical type and description as those {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}}, and that the {{gmraprov|non-Defaulting Party}} elects to treat as the {{gmraprov|Default {{gmraprov|Market Value}}}}
| |
| :(aa) in the case of {{gmraprov|Receivable {{gmraprov|Securities}}}}, the net proceeds of such sale after deducting all reasonable costs, fees and expenses incurred in connection therewith (provided that, where the {{gmraprov|Securities}} sold are not identical in amount to the {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}}, the {{gmraprov|non-Defaulting Party}} may either (x) elect to treat such net proceeds of sale divided by the amount of {{gmraprov|Securities}} sold and multiplied by the amount of the {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} as the {{gmraprov|Default {{gmraprov|Market Value}}}} or (y) elect to treat such net proceeds of sale of the {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} actually sold as the {{gmraprov|Default {{gmraprov|Market Value}}}} of that proportion of the {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}}, and, in the case of (y), the {{gmraprov|Default {{gmraprov|Market Value}}}} of the balance of the {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} shall be determined separately in accordance with the provisions of this paragraph 10(e)}} and accordingly may be the subject of a separate notice (or notices) under this paragraph 10(e)(i)}}; or
| |
| :(bb) in the case of {{gmraprov|Deliverable {{gmraprov|Securities}}}}, the aggregate cost of such purchase, including all reasonable costs, fees and expenses incurred in connection therewith (provided that, where the {{gmraprov|Securities}} purchased are not identical in amount to the {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}}, the {{gmraprov|non-Defaulting Party}} may either (x) elect to treat such aggregate cost divided by the amount of {{gmraprov|Securities}} sold and multiplied by the amount of the {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} as the {{gmraprov|Default {{gmraprov|Market Value}}}} or (y) elect to treat the aggregate cost of purchasing the {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} actually purchased as the {{gmraprov|Default {{gmraprov|Market Value}}}} of that proportion of the {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}}, and, in the case of (y), the {{gmraprov|Default {{gmraprov|Market Value}}}} of the balance of the {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} shall be determined separately in accordance with the provisions of this paragraph 10(e)}} and accordingly may be the subject of a separate notice (or notices) under this paragraph 10(e)(i)}}
| |
| :(B) states - that the {{gmraprov|non-Defaulting Party}} has received, in the case of {{gmraprov|Deliverable {{gmraprov|Securities}}}}, offer quotations or, in the case of ReceivableSecurities, bid quotations in respect of {{gmraprov|Securities}} of the relevant description from two or more market makers or regular dealers in the {{gmraprov|Appropriate Market}} in a commercially reasonable size (as determined by the non {{gmraprov|Defaulting Party}}) and specifies –
| |
| :(aa) the price or prices quoted by each of them for, in the case of {{gmraprov|Deliverable {{gmraprov|Securities}}}}, the sale by the relevant market marker or dealer of such {{gmraprov|Securities}} or, in the case of {{gmraprov|Receivable {{gmraprov|Securities}}}}, the purchase by the relevant market maker or dealer of such {{gmraprov|Securities}};
| |
| :(bb) the {{gmraprov|Transaction Costs}} which would be incurred in connection with such a {{gmraprov|Transaction}}; and
| |
| :(cc) that the {{gmraprov|non-Defaulting Party}} elects to treat the price so quoted (or, where more than one price is so quoted, the arithmetic mean of the prices so quoted), after deducting, in the case of {{gmraprov|Receivable {{gmraprov|Securities}}}}, or adding, in the case of {{gmraprov|Deliverable {{gmraprov|Securities}}}}, such {{gmraprov|Transaction Costs}}, as the {{gmraprov|Default {{gmraprov|Market Value}}}} of the relevant {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}};
| |
| (C) states
| |
| :(aa) that either (x) acting in good faith, the {{gmraprov|non-Defaulting Party}} has endeavoured but been unable to sell or purchase {{gmraprov|Securities}} in accordance with sub paragraph {{gmraprov|10(e)(i)(A)}} above or to obtain quotations in accordance with sub paragraph {{gmraprov|10(e)(i)(B)}} above (or both) or (y) the {{gmraprov|non-Defaulting Party}} has determined that it would not be commercially reasonable to obtain such quotations, or that it would ' not be commercially reasonable to use any quotations which it has obtained under sub paragraph {{gmraprov|10(e)(i)(B) above; and
| |
| :(bb) that the {{gmraprov|non-Defaulting Party}} has determined the {{gmraprov|Net Value}} of the relevant {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} (which shall be specified) and that the {{gmraprov|non-Defaulting Party}} elects to treat such {{gmraprov|Net Value}} as the {{gmraprov|Default {{gmraprov|Market Value}}}} of the relevant {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}}, then the {{gmraprov|Default {{gmraprov|Market Value}}}} of the relevant {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} shall be an amount equal to the {{gmraprov|Default {{gmraprov|Market Value}}}} specified in accordance with (A), (B)(cc) or, as the case may be, (C)(bb) above.
| |
| :(ii) If by the {{gmraprov|Default Valuation Time}} the {{gmraprov|non-Defaulting Party}} has not given a {{gmraprov|Default Valuation Notice}}, the {{gmraprov|Default {{gmraprov|Market Value}}}} of the relevant {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} shall be an amount equal to their {{gmraprov|Net Value}} at the {{gmraprov|Default Valuation Time}}; provided that, if at the {{gmraprov|Default Valuation Time}} the {{gmraprov|non-Defaulting Party}} reasonably determines that, owing to circumstances affecting the market in the {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} in question, it is not possible for the {{gmraprov|non-Defaulting Party}} to determine a {{gmraprov|Net Value}} of such {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} which is commercially reasonable, the {{gmraprov|Default {{gmraprov|Market Value}}}} of such {{gmraprov|Equivalent {{gmraprov|Securities}}}} or {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} shall be an amount equal to their {{gmraprov|Net Value}} as determined by the {{gmraprov|non-Defaulting Party}} as soon as reasonably practicable after the {{gmraprov|Default Valuation Time}}.
| |
| :(f) The {{gmraprov|Defaulting Party}} shall be liable to the {{gmraprov|non-Defaulting Party}} for the amount of all reasonable legal and other professional expenses incurred by the {{gmraprov|non-Defaulting Party}} in connection with or as a consequence of an {{gmraprov|Event of Default}}, together with interest thereon at {{gmraprov|LIBOR}} or, in the case of an expense attributable to a particular {{gmraprov|Transaction}}, the {{gmraprov|Pricing Rate}} for the relevant {{gmraprov|Transaction}} if that {{gmraprov|Pricing Rate}} is greater than {{gmraprov|LIBOR}}.
| |
| :(g) If {{gmraprov|Seller}} fails to deliver {{gmraprov|Purchased {{gmraprov|Securities}}}} to {{gmraprov|Buyer}} on the applicable {{gmraprov|Purchase Date}} {{gmraprov|Buyer}} may
| |
| :(i) if it has paid the {{gmraprov|Purchase Price}} to {{gmraprov|Seller}}, require {{gmraprov|Seller}} immediately to repay the sum so paid;
| |
| :(ii) if {{gmraprov|Buyer}} has a {{gmraprov|Transaction Exposure}} to {{gmraprov|Seller}} in respect of the relevant {{gmraprov|Transaction}}, require {{gmraprov|Seller}} from time to time to pay {{gmraprov|Cash Margin}} at least equal to such {{gmraprov|Transaction Exposure}};
| |
| :(iii) at any time while such failure continues, terminate the {{gmraprov|Transaction}} by giving written notice to {{gmraprov|Seller}}. On such termination the obligations of {{gmraprov|Seller}} and {{gmraprov|Buyer}} with respect to delivery of {{gmraprov|Purchased {{gmraprov|Securities}}}} and {{gmraprov|Equivalent {{gmraprov|Securities}}}} shall terminate and {{gmraprov|Seller}} shall pay to {{gmraprov|Buyer}} an amount equal to the excess of the {{gmraprov|Repurchase Price}} at the date of {{gmraprov|Termination}} over the {{gmraprov|Purchase Price}}.
| |
| :(h) If {{gmraprov|Buyer}} fails to deliver {{gmraprov|Equivalent {{gmraprov|Securities}}}} to {{gmraprov|Seller}} on the applicable {{gmraprov|Repurchase Date}} {{gmraprov|Seller}} may
| |
| :(i) if it has paid the {{gmraprov|Repurchase Price}} to {{gmraprov|Buyer}}, require {{gmraprov|Buyer}} immediately to repay the sum so paid;
| |
| :(ii) if {{gmraprov|Seller}} has a {{gmraprov|Transaction Exposure}} to {{gmraprov|Buyer}} in respect of the relevant {{gmraprov|Transaction}}, require {{gmraprov|Buyer}} from time to time to pay {{gmraprov|Cash Margin}} at least equal to such {{gmraprov|Transaction Exposure}};
| |
| :(iii) at any time while such failure continues, by written notice to {{gmraprov|Buyer}} declare that that {{gmraprov|Transaction}} (but only that {{gmraprov|Transaction}}) shall be terminated immediately in accordance with sub paragraph {{gmraprov|10(c)}} above (disregarding for this purpose references in that sub paragraph {{gmraprov|to transfer of {{gmraprov|Cash Margin}} and delivery of {{gmraprov|Equivalent {{gmraprov|Margin {{gmraprov|Securities}}}}}} and as if references to the {{gmraprov|Repurchase Date}} were to the date on which notice was given under this sub¬paragraph).
| |
| :(i) The provisions of this {{gmraprov|Agreement}} constitute a complete statement of the remedies available to each party in respect of any {{gmraprov|Event of Default}}.
| |
| :(j) Subject to paragraph {{gmraprov|10(k)}}, neither party may claim any sum by way of consequential loss or damage in the event of a failure by the other party to perform any of its obligations under this {{gmraprov|Agreement}}.
| |
| :(k) (i) Subject to sub paragraph {{gmraprov|(ii) below, if as a result of a {{gmraprov|Transaction}} terminating before its agreed {{gmraprov|Repurchase Date}} under paragraphs {{gmraprov|10(b)}}, {{gmraprov|10(g)(iii)}} or{{gmraprov|10(h)(iii)}}, the non {{gmraprov|Defaulting Party}}, in the case of paragraph {{gmraprov|10(b)}}, {{gmraprov|Buyer}}, in the case of paragraph {{gmraprov|10(g)(iii)}}, or {{gmraprov|Seller}}, in the case of paragraph {{gmraprov|10(h)(iii)}}, (in each case the “'''{{gmraprov|first party}}}}'''”) incurs any loss or expense in entering into replacement {{gmraprov|Transaction}}s, the other party shall be required to pay to the {{gmraprov|first party}} the amount determined by the {{gmraprov|first party}} in good faith to be equal to the loss or expense incurred in connection with such replacement {{gmraprov|Transaction}}s (including all fees, costs and other expenses) less the amount of any profit or gain made by that party in connection with such replacement {{gmraprov|Transaction}}s; provided that if that calculation results in a negative number, an amount equal to that number shall be payable by the {{gmraprov|first party}} to the other party.
| |
| :(ii) If the {{gmraprov|first party}} reasonably decides, instead of entering into such replacement {{gmraprov|Transaction}}s, to replace or unwind any hedging {{gmraprov|Transaction}}s which the {{gmraprov|first party}} entered into in connection with the {{gmraprov|Transaction}} so terminating, or to enter into any replacement hedging {{gmraprov|Transaction}}s, the other party shall be required to pay to the {{gmraprov|first party}} the amount determined by the {{gmraprov|first party}} in good faith to be equal to the loss or expense incurred in connection with entering into such replacement or unwinding (including all fees, costs and other expenses) less the amount of any profit or gain made by that party in connection with such replacement or unwinding; provided that if that calculation results in a negative number, an amount equal to that number shall be payable by the {{gmraprov|first party}} to the other party.
| |
| :(l) Each party shall immediately notify the other if an {{gmraprov|Event of Default}}, or an event which, upon the serving of a {{gmraprov|Default Notice}}, would be an {{gmraprov|Event of Default}}, occurs in relation to it.
| |
| {{gmraprov|11}}. {{gmraprov|Tax Event}}
| |
| :(a) This paragraph shall apply if either party notifies the other that
| |
| :(i) any action taken by a taxing authority or brought in a court of competent jurisdiction (regardless of whether such action is taken or brought with respect to a party to this {{gmraprov|Agreement}}); or
| |
| :(ii) a change in the fiscal or regulatory regime (including, but not limited to, a [[change in law]] or in the general interpretation of law but excluding any change in any rate of tax), has or will, in the notifying party's reasonable opinion, have a material adverse effect on that party in the context of a {{gmraprov|Transaction}}.
| |
| :(b) If so requested by the other party, the notifying party will furnish the other with an opinion of a suitably qualified adviser that an event referred to in sub paragraph {{gmraprov|11(a)(i)}} or {{gmraprov|11(a)(ii)}} above has occurred and affects the notifying party.
| |
| :(c) Where this paragraph applies, the party giving the notice referred to in sub paragraph {{gmraprov|11(a)}} may, subject to sub paragraph {{gmraprov|(d) below, terminate the {{gmraprov|Transaction}} with effect from a date specified in the notice, not being earlier (unless so agreed by the other party) than 30 days after the date of the notice, by nominating that date as the {{gmraprov|Repurchase Date}}.
| |
| :(d) If the party receiving the notice referred to in sub paragraph {{gmraprov|11(a)}} so elects, it may override that notice by giving a counter notice to the other party. If a counter notice is given, the party which gives the counter notice will be [[deemed]] to have agreed to indemnify the other {{gmraprov|Party A}}gainst the adverse effect referred to in sub paragraph {{gmraprov|11(a)}} so far as relates to the relevant {{gmraprov|Transaction}} and the original {{gmraprov|Repurchase Date}} will continue to apply.
| |
| :(e) Where a {{gmraprov|Transaction}} is terminated as described in; this paragraph, the party which has given the notice to terminate shall indemnify the other {{gmraprov|Party A}}gainst any reasonable legal and other professional expenses incurred by the other {{gmraprov|Party B}}y reason of the termination, but the other party may not claim any sum by way of consequential loss or damage in respect of a termination in accordance with this paragraph.
| |
| :(f) This paragraph is without prejudice to paragraph {{gmraprov|6(b)}} (obligation to pay additional amounts if withholding or deduction required); but an obligation to pay such additional amounts may, where appropriate, be a circumstance which causes this paragraph to apply.
| |
| {{gmraprov|12}}. {{gmraprov|Interest}}
| |
| To the extent permitted by applicable law, if any sum of money payable hereunder or under any {{gmraprov|Transaction}} is not paid when due, interest shall accrue on the unpaid sum as a separate debt at the greater of the {{gmraprov|Pricing Rate}} for the {{gmraprov|Transaction}} to which such sum relates (where such sum is referable to a {{gmraprov|Transaction}}) and {{gmraprov|LIBOR}} on a 360 day basis or 365 day basis in accordance with the applicable ISMA convention, for the actual number of days during the period from and including the date on which payment was due to, but excluding, the date of payment.
| |
| {{gmraprov|13}}. {{gmraprov|Single Agreement}}
| |
| Each {{gmraprov|Party A}}cknowledges that, and has entered into this {{gmraprov|Agreement}} and will enter into each {{gmraprov|Transaction}} hereunder in consideration of and in reliance upon the fact that all {{gmraprov|Transaction}}s hereunder constitute a single business and contractual relationship and are made in consideration of each other. Accordingly, each {{gmraprov|Party A}}grees (i) to perform all of its obligations in respect of each {{gmraprov|Transaction}} hereunder, and that a default in the performance of any such obligations shall constitute a default by it in respect of all {{gmraprov|Transaction}}s hereunder, and (ii) that payments, deliveries and other transfers made by either of them in respect of any {{gmraprov|Transaction}} shall be [[deemed]] to have been made in consideration of payments, deliveries and other transfers in respect of any other {{gmraprov|Transaction}}s hereunder.
| |
| {{gmraprov|14}}. {{gmraprov|Notices and Other Communications}}
| |
| :(a) Any notice or other communication to be given under this {{gmraprov|Agreement}}
| |
| :(i) shall be in the English language, and except where expressly otherwise provided in this {{gmraprov|Agreement}}, shall be in writing;
| |
| :(ii) may be given in any manner described in sub paragraphs {{gmraprov|14(b)}} and {{gmraprov|14(c)}} below;
| |
| :(iii) shall be sent to the party to whom it is to be given at the address or number, or in accordance with the electronic messaging details, set out in Annex I hereto.
| |
| :(b) Subject to sub paragraph {{gmraprov|14(c)}} below, any such notice or other communication shall be effective
| |
| :(i) if in writing and delivered in person or by courier, at the time when it is delivered;
| |
| :(ii) if sent by [[telex]], at the time when the recipient's answerback is received;
| |
| :(iii) if sent by facsimile transmission, at the time when the transmission is received by a responsible employee of the recipient in legible form (it being agreed that the burden of proving receipt will be on the sender and will not be met by a transmission report generated by the sender's facsimile machine);
| |
| :(iv) if sent by certified or registered mail (airmail, if overseas) or the {{gmraprov|equivalent}} (return receipt requested), at the time when that mail is delivered or its delivery is attempted;
| |
| :(v) if sent by [[electronic messaging system]], at the time that electronic message is received; except that any notice or communication which is received, or delivery of which is attempted, after close of business on the date of receipt or attempted delivery or on a day which is not a day on which commercial banks are open for business in the place where that notice or other communication is to be given shall be treated as given at the opening of business on the next following day which is such a day.
| |
| :(c) If
| |
| :(i) there occurs in relation to either {{gmraprov|Party A}}n event which, upon the service of a {{gmraprov|Default Notice}}, would be an {{gmraprov|Event of Default}}; and
| |
| :(ii) the non {{gmraprov|Defaulting Party}}, having made all practicable efforts to do so, including having attempted to use at least two of the methods specified in sub paragraph {{gmraprov|14(b)}}(ii), (iii) or (v), has been unable to serve a {{gmraprov|Default Notice}} by one of the methods specified in those sub paragraphs (or such of those methods as are normally used by the {{gmraprov|non-Defaulting Party}} when communicating with the {{gmraprov|Defaulting Party}}), the {{gmraprov|non-Defaulting Party}} may sign a written notice (a “'''{{gmraprov|Special Default Notice}}'''”) which
| |
| :(aa) specifies the relevant event referred to in paragraph {{gmraprov|10(a)}} which has occurred in relation to the {{gmraprov|Defaulting Party}};
| |
| :(bb) states that the non {{gmraprov|Defaulting Party}}, having made all practicable efforts to do so, including having attempted to use at least two of the methods specified in sub paragraph {{gmraprov|14(b)}}(ii), (iii) or (v), has been unable to serve a {{gmraprov|Default Notice}} by one of the methods specified in those sub paragraphs (or such of those methods as are normally used by the {{gmraprov|non-Defaulting Party}} when communicating with the {{gmraprov|Defaulting Party}});
| |
| :(cc) specifies the date on which, and the time at which, the {{gmraprov|Special Default Notice}} is signed by the non {{gmraprov|Defaulting Party}}; and
| |
| :(dd) states that the event specified in accordance with sub paragraph {{gmraprov|14(c)}}(aa) above shall be treated as an {{gmraprov|Event of Default}} with effect from the date and time so specified.
| |
| On the signature of a {{gmraprov|Special Default Notice}} the relevant event shall be treated with effect from the date and time so specified as an {{gmraprov|Event of Default}} in relation to the {{gmraprov|Defaulting Party}}, and accordingly references in paragraph {{gmraprov|10}} to a {{gmraprov|Default Notice}} shall be treated as including a {{gmraprov|Special Default Notice}}. A {{gmraprov|Special Default Notice}} shall be given to the {{gmraprov|Defaulting Party}} as soon as practicable after it is signed.
| |
| :(d) Either party may by notice to the other change the address, [[telex]] or facsimile number or [[electronic messaging system]] details at which notices or other communications are to be given to it.
| |
| {{gmraprov|15}}. {{gmraprov|Entire Agreement; Severability}}
| |
| This {{gmraprov|Agreement}} shall supersede any existing agreements between the parties containing general terms and conditions for {{gmraprov|Transaction}}s. Each provision and agreement herein shall be treated as separate from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.
| |
| {{gmraprov|16}}. {{gmraprov|Non assignability; Termination}}
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| :(a) Subject to sub paragraph {{gmraprov|(b) below, neither party may assign, charge or otherwise deal with (including [[without limitation]] any dealing with any interest in or the creation of any interest in) its rights or obligations under this {{gmraprov|Agreement}} or under any {{gmraprov|Transaction}} without the prior written consent of the other party. Subject to the foregoing, this {{gmraprov|Agreement}} and any {{gmraprov|Transaction}}s shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns.
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| :(b) Sub paragraph {{gmraprov|16(a)}} above shall not preclude a party from assigning, charging or otherwise dealing with all or any part of its interest in any sum payable to it under paragraph {{gmraprov|10(c)}} or {{gmraprov|10(f)}} above.
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| :(c) Either party may terminate this {{gmraprov|Agreement}} by giving written notice to the other, except that this {{gmraprov|Agreement}} shall, notwithstanding such notice, remain applicable to any {{gmraprov|Transaction}}s then outstanding.
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| :(d) All remedies hereunder shall survive {{gmraprov|Termination}} in respect of the relevant {{gmraprov|Transaction}} and termination of this {{gmraprov|Agreement}}.
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| :(e) The participation of any additional member State of the European Union in economic and monetary union after 1 January 1999 shall not have the effect of altering any term of the Agreement or any {{gmraprov|Transaction}}, nor give a party the right unilaterally to alter or terminate the Agreement or any {{gmraprov|Transaction}}.
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| {{gmraprov|17}}. {{gmraprov|Governing Law}}
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| This {{gmraprov|Agreement}} shall be governed by and construed in accordance with the laws of England. {{gmraprov|Buyer}} and {{gmraprov|Seller}} hereby irrevocably submit for all purposes of or in connection with this {{gmraprov|Agreement}} and each {{gmraprov|Transaction}} to the jurisdiction of the Courts of England.
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| {{gmraprov|Party A}} hereby appoints the person identified in Annex I hereto as its agent to receive on its behalf service of process in such courts. If such agent ceases to be its agent, {{gmraprov|Party A}} shall promptly appoint, and notify {{gmraprov|Party B}} of the identity of, a new agent in England.
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| {{gmraprov|Party B}} hereby appoints the person identified in Annex I hereto as its agent to receive on its behalf service of process in such courts. If such agent ceases to be its agent, {{gmraprov|Party B}} shall promptly appoint, and notify {{gmraprov|Party A}} of the identity of, a new agent in England.
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| Each party shall deliver to the other, within 30 days of the date of this {{gmraprov|Agreement}} in the case of the appointment of a person identified in Annex I or of the date of the appointment of the relevant agent in any other case, evidence of the acceptance by the agent appointed by it pursuant to this paragraph of such appointment.
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| Nothing in this paragraph shall limit the right of any party to take proceedings in the courts of any other country of competent jurisdiction.
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| {{gmraprov|18}}. {{gmraprov|No Waivers, etc.}}
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| No express or implied waiver of any {{gmraprov|Event of Default}} by either party shall constitute a waiver of any other {{gmraprov|Event of Default}} and no exercise of any remedy hereunder by any party shall constitute a waiver of its right to exercise any other remedy hereunder. No modification or waiver of any provision of this {{gmraprov|Agreement}} and no consent by any party to a departure herefrom shall be effective unless and until such modification, waiver or consent shall be in writing and duly executed by both of the parties hereto. [[without limitation]] on any of the foregoing, the failure to give a notice pursuant to paragraph {{gmraprov|4(a)}} hereof will not constitute a waiver of any right to do so at a later date.
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| {{gmraprov|19}}. {{gmraprov|Waiver of immunity}}
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| Each party hereto hereby waives, to the fullest extent permitted by applicable law, all immunity (whether on the basis of sovereignty or otherwise) from jurisdiction, attachment (both before and after judgment) and execution to which it might otherwise be entitled in any action or proceeding in the Courts of England or of any other country or jurisdiction, relating in any way to this {{gmraprov|Agreement}} or any {{gmraprov|Transaction}}, and agrees that it will not raise, claim or cause to be pleaded any such immunity at or in respect of any such action or proceeding.
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| {{gmraprov|20}}. {{gmraprov|Recording}}
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| The parties agree that each may electronically record all telephone conversations between them.
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| {{gmraprov|21}}. {{gmraprov|Third Party Rights}}
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| No person shall have any right to enforce any provision of this {{gmraprov|Agreement}} under the [[Contracts (Rights of Third Parties) Act 1999]].
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