Interpretation (Buy/Sellback Annex) - GMRA Provision

2000 Global Master Repurchase Agreement
A Jolly Contrarian owner’s manual™

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Resources: 2010 GMRA: Full wikitext · Nutshell wikitext Navigation 2000 GMRA Table of Contents · 1 · 2 · 3 · 4 · 5 · 6 · 7 · 8 · 9 · 10 · 11 · 12 · 13 · 14 · 15 · 16 · 17 · 18 · 19 · 20 · 21 · Schedule · Equities Annex: EA 1 · EA 2 · EA 3 · EA 4 · EA 5 · Buy/Sellback Annex · BSA 1 · BSA 2 · BSA 3 · BSA 4 · BNA 5 Index: Click ᐅ to expand: GMRA

Paragraph BSA 2 in a Nutshell™

Use at your own risk, campers!

BSA 2 Interpretation (a) Definitions: In this Annex: (i) “Accrued Interest” means for any Purchased Securities under a Buy/Sell Back Transaction, unpaid Income accruing from the last Income Payment Date for the Purchased Securities to the calculation date. Unpaid Income will accrue daily during each interest period; (ii) “Sell Back Differential” means the aggregate amount obtained by daily applying Pricing Rate on a Buy/Sell Back Transaction using the appropriate ISMA day count convention, to the sum of (a) the Purchase Price and (b) Accrued Interest paid on the Purchase Date for such Transaction for the actual number of days between the Purchase Date and the calculation date; (iii) “Sell Back Price” means, for any Buy/Sell Back Transaction: (x) for the originally agreed Repurchase Date under paragraph 3(b)(iii), the agreed price agreed for that Buy/Sell Back Transaction, and (y) in any other case the product of the formula (P + Al +D) - (IR + C), where: P = Purchase Price. Al = Accrued Interest at the Purchase Date, paid under paragraph BSA 3(f). D = Sell Back Differential. IR = Any income payable under the Purchased Securities on any date between the Purchase Date and the Repurchase Date. C = the aggregate amount obtained by applying the Pricing Rate to the Income daily from the payment date to the of calculation date (b) Construction: References to Repurchase Price in the Agreement will include any relevant Sell Back Price. (c) Events of Default: In Paragraph 10(c)(i) (Events of Default), “Repurchase Prices” includes Sell Back Prices”. (d) Hierarchy: Where this Annex conflicts with any other term of the Agreement, the Annex will prevail. view template

Full text of Paragraph BSA 2

BSA 2 Interpretation (a) In this Annex - (i) “Accrued Interest”, with respect to any Purchased Securities subject to a Buy/Sell Back Transaction, unpaid Income that has accrued during the period from (and including) the issue date or the last Income Payment Date (whichever is the later) in respect of such Purchased Securities to (but excluding) the date of calculation. For these purposes unpaid Income shall be deemed to accrue on a daily basis from (and including) the issue date or the last Income Payment Date (as the case may be) to (but excluding) the next Income Payment Date or the maturity date (whichever is the earlier); (ii) “Sell Back Differential”, with respect to any Buy/Sell Back Transaction as of any date, the aggregate amount obtained by daily application of the Pricing Rate for such Buy/Sell Back 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 Transaction) to the sum of (a) the Purchase Price and (b) Accrued Interest paid on the Purchase Date for such Transaction for the actual number of days during the period commencing on (and including) the Purchase Date for such Buy/Sell Back Transaction and ending on (but excluding) the date of calculation; (iii) “Sell Back Price”, with respect to any Buy/Sell Back Transaction, means - (x) in relation to the date originally specified by the parties as the Repurchase Date pursuant to paragraph 3(b)(iii) of the Agreement, the price agreed by the Parties in relation to that Buy/Sell Back Transaction, and (y) in any other case (including for the purposes of the application of paragraph 4 (margin maintenance) or paragraph 10 (Events of Default) of the Agreement), the product of the formula (P + Al +D) - (IR + C), where - P = the Purchase Price Al = the amount, equal to Accrued Interest at the Purchase Date, paid under paragraph 3(f) of this Annex D = the Sell Back Differential IR = the amount of any income in respect of the Purchased Securities payable by the issuer on or, in the case of registered Securities, by reference to, any date falling between the Purchase Date and the Repurchase Date C = the aggregate amount obtained by daily application of the Pricing Rate for such Buy/Sell Back Transaction to any such Income from (and including) the date of payment by the issuer to (but excluding) the date of calculation (b) References to Repurchase Price throughout the Agreement shall be construed as references to “Repurchase Price or Sell Back Price, as the case may be”. (c) In Paragraph 10(c)(i) of the Agreement (relating to Events of Default), the reference to the “Repurchase Prices” shall be construed as a reference to “Repurchase Prices and Sell Back Prices”. (d) In the event of any conflict between the terms of this Annex Ill and any other term of the Agreement, the terms in this Annex shall prevail. view template

Related agreements and comparisons

Related agreements: Click here for the same clause in the 1996 MRA, when we get round to finding out the first thing about it. Comparison: Knowing and, really, caring very little about other kinds of repo agreement, we have nothing presently to compare the Global Master Repurchase Agreement with.