List of Events of Default - GMSLA Provision: Difference between revisions

Latest revision as of 12:34, 18 November 2020

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-{{gmslaanat|10.1}}
+#redirect[[Events of Default - GMSLA Provision]]
-{{2010 GMSLA Section 10.1 TOC}}
-===No Event of Default without notice===
-Note that (unlike the {{isdama}} an event only becomes an {{gmslaprov|Event of Default}} once the {{gmslaprov|Non Defaulting Party}} has given the Defaulting Party notice of it.
-===The dog that didn't bark in the nighttime===
-Most interesting is what is '''not''' in there: There is no:
-*[[Cross Default]]
-*{{isdaprov|Default under Specified Transaction}} equivalent
-*{{isdaprov|Credit Support Default}} equivalent
-*{{isdaprov|Merger without Assumption}} equivalent
-*{{isdaprov|Illegality}} equivalent
-*{{isdaprov|Tax Event}} equivalent
-*{{isdaprov|Credit Event Upon Merger}} equivalent
-*{{isdaprov|Tax Event Upon Merger}} equivalent
-'''Why not?''': Unlike an {{isdama}}, generally, {{gmslaprov|Loan}} transactions under a {{gmsla}} are callable on notice. If your counterparty suffes any kind of credit deterioration, your option is to immediately recall your loans. If they redeliver—great. If they ''don’t'', you have them bang to rights on a {{gmslaprov|failure to pay or deliver}}. Simples.
-It's a similar story under the {{gmra}} by the way.
-{{seealso}}
-*{{isdaprov|Events of Default}} under the {{isdama}}
-*{{gmraprov|Events of Default}} under the {{gmra}}