Indemnity for failure to redeliver Equivalent Non-Cash Collateral - GMSLA Provision: Difference between revisions

Indemnity for failure to redeliver Equivalent Non-Cash Collateral - GMSLA Provision (view source)

963 bytes added , 5 December 2014

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 {{gmslasnap|6.4}}
 ====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====
 {{gmslaanatomy}}