Manufactured payments in respect of Loaned Securities - GMSLA Provision: Difference between revisions

Manufactured payments in respect of Loaned Securities - GMSLA Provision (view source)

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	{{~~gmslaanat~~\|6.2}}''For the equivalent provision under the {{2000gmsla}} see Paragraph [[6 - 2000 GMSLA Provision]].''<br>		{{Manual\|MSG\|2010\|6.2\|Clause\|6.1\|medium}}''For the equivalent provision under the {{2000gmsla}} see Paragraph [[6 - 2000 GMSLA Provision]].''<br>

	In other words the {{gmslaprov\|Borrower}} pays what the {{gmslaprov\|Lender}} would have received net, by reference to the Lender's own situation. This means that the {{gmslaprov\|Lender}} doesn't need to worry about different rates of tax or withholding applying to the {{gmslaprov\|Borrower}}. The {{gmslaprov\|Borrower}}, being the person who wanted to borrow the securities, takes the risk of untoward taxes related to its own position (as opposed to the {{gmslaprov\|Lender}}’s position) — if the tax is one the {{gmslaprov\|Lender}} would have suffered anyway, the {{gmslaprov\|Borrower}} doesn't have to account for this.		In other words the {{gmslaprov\|Borrower}} pays what the {{gmslaprov\|Lender}} would have received net, by reference to the Lender's own situation. This means that the {{gmslaprov\|Lender}} doesn't need to worry about different rates of tax or withholding applying to the {{gmslaprov\|Borrower}}. The {{gmslaprov\|Borrower}}, being the person who wanted to borrow the securities, takes the risk of untoward taxes related to its own position (as opposed to the {{gmslaprov\|Lender}}’s position) — if the tax is one the {{gmslaprov\|Lender}} would have suffered anyway, the {{gmslaprov\|Borrower}} doesn't have to account for this.