Indemnity for failure to redeliver Equivalent Non-Cash Collateral - GMSLA Provision: Difference between revisions
Amwelladmin (talk | contribs) (Created page with "{{subst:gmslap|6.4}}") |
Amwelladmin (talk | contribs) |
||
| Line 1: | Line 1: | ||
{{gmslasnap|6.4}} | {{gmslasnap|6.4}} | ||
====Commentary==== | ====Commentary==== | ||
Where a borrower has called for redelivery of {{gmslaprov|equivalent}} non-cash {{gmslaprov|collateral}} prior to an {{gmslaprov|income record date}} and the lender fails to make reasonable efforts to effect the redelivery, paragraph {{gmslaprov|6.4}} provides for the lender to indemnify the borrower against any loss directly resulting from such failure. | |||
The indemnity only applies where the borrower has agreed with the lender to provide acceptable alternative collateral and has given sufficient notice of its call for redelivery of the non-cash collateral. The lender, acting reasonably, must also have indicated to the borrower that the proposed alternative collateral is acceptable to it (as to which, see {{isdaprov|5.15}} below). These provisions are modelled on those contained in the equities annex to the 2000 version of the {{gmsla}}. The parties may elect to disapply paragraph {{gmslaprov|6.4}} under paragraph 1.6 of the {{gmslaprov|Schedule}}. | |||
====See Also==== | ====See Also==== | ||
{{gmslaanatomy}} | {{gmslaanatomy}} | ||
Revision as of 12:27, 5 December 2014
Commentary
Where a borrower has called for redelivery of equivalent non-cash collateral prior to an income record date and the lender fails to make reasonable efforts to effect the redelivery, paragraph 6.4 provides for the lender to indemnify the borrower against any loss directly resulting from such failure.
The indemnity only applies where the borrower has agreed with the lender to provide acceptable alternative collateral and has given sufficient notice of its call for redelivery of the non-cash collateral. The lender, acting reasonably, must also have indicated to the borrower that the proposed alternative collateral is acceptable to it (as to which, see 5.15 below). These provisions are modelled on those contained in the equities annex to the 2000 version of the 2010 GMSLA. The parties may elect to disapply paragraph 6.4 under paragraph 1.6 of the Schedule.
See Also
update to anat|gmsla
|
Navigation 2018 Pledge GMSLA 1 · 2 · 3 · 4 · 5 · 6 · 7 · 8 · 9 · 10 · 11 · 12 · 13 · 14 · 15 · 16 · 17 · 18 · 19 · 20 · 21 · 22 · 23 · 24 · 25 · 26 · 27 · 28 · Schedule · Agency Annex Stock lending agreement comparison: Includes navigation for the 2000 GMSLA and the 1995 OSLA |
2010 GMSLA: Full wikitext · Nutshell wikitext | GMLSA legal code | GMSLA Netting
Pledge GMSLA: Hard copy (ISLA) · Full wikitext · Nutshell wikitext |
1995 OSLA: OSLA wikitext | OSLA in a nutshell | GMSLA/PGMSLA/OSLA clause comparison table
From Our Friends On The Internet: Guide to equity finance | ISLA’s guide to securities lending for regulators and policy makers