Manufactured payments in respect of Non-Cash Collateral - GMSLA Provision: Difference between revisions

There is quite a lot of hedging around with conditionals — “the amount the Lender would have received had it held...” — that looks quite unnecessary — and truthfully, is — but is designed to cater for the details freak/paranoid weirdos in the legal department, because (a) being a title transfer agreement, the Lender is not obliged to, and may well not, hold on to any collateral it has been delivered, and thus may not be entitled to interest on the Collateral at all, and (b) the Lender is only obliged to [[manufacture]] the payment if the {{gmslaprov|Collateral}} {{gmslaprov|Issuer}} ''actually'' makes the payment, and not if it is obliged to make the payment, but then fails to (because it has blown up, for example.