Marking to Market of Collateral during the currency of a Loan - Pledge GMSLA Provision

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2018 Global Master Securities Lending Agreement (Pledge Version)
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GMSLA

Clause 5.3 in a Nutshell
Use at your own risk, campers!

Template:Nutshell Pledge GMSLA 5.3 view template

Full text of Clause 5.3

5.3 Marking to Market of Collateral during the currency of a Loan: Unless otherwise agreed between the Parties:

5.3(a) the aggregate Market Value of the Posted Collateral in respect of all outstanding Loans and, as of the relevant Settlement Date or any earlier time agreed between the Parties for the Delivery of Collateral with respect to any Unsettled Loans, such Unsettled Loans, shall equal the aggregate of:
5.3(a)(i) the Market Values of Securities Equivalent to the Loaned Securities; plus
5.3(a)(ii) all amounts (if any) due and payable by Borrower under this Agreement but which are unpaid; plus
5.3(a)(iii) if agreed between the Parties and if the Income Record Date has occurred in respect of any Securities Equivalent to Loaned Securities, the amount or Market Value of Income payable in respect of such Equivalent Securities in respect of such Loans; plus
5.3(a)(iv) if agreed between the Parties, any amounts which have accrued pursuant to paragraph 7
(the Required Collateral Value);
5.3(b) if on any Business Day the aggregate Market Value of the Posted Collateral exceeds the Required Collateral Value applicable on that day, Lender shall in the manner provided by the Control Agreement instruct Custodian to transfer to Borrower from the relevant Secured Account by Close of Business on the relevant Business Day Posted Collateral having a Market Value at the date of transfer as close as practicable to (but not exceeding) the amount of the excess;
5.3(c) if on any Business Day the aggregate Market Value of the Posted Collateral falls below the Required Collateral Value applicable on that day, Borrower shall in the manner provided by the Control Agreement deliver and, in the case of Cash Collateral, transfer into the relevant Secured Account by Close of Business on the relevant Business Day, such further Collateral having a Market Value as at the date of transfer as close as practicable to (but not less than) the amount of the deficiency; and
5.3(d) each Party agrees that any transfer of Collateral into or out of the Secured Accounts will be effected only in accordance with the Control Agreement.

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Related agreements and comparisons

Related agreements: Click here for the same clause in the 2010 GMSLA
Comparison: Template:Gmsladiff 5.4

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Content and comparisons

Template:M comp disc Pledge GMSLA 5.3
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Summary

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See also

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References