Marking to Market of Collateral during the currency of a Loan on aggregated basis - GMSLA Provision: Difference between revisions
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{{gmslasnap|5.4}} | {{gmslasnap|5.4}} | ||
====Commentary==== | ====Commentary==== | ||
To Summarise: | |||
Unless "single {{gmslaprov|Loan}} margining under {{gmslaprov|5.5}} applies: | |||
:(a) the aggregate {{gmslaprov|Posted Collateral}} {{gmslaprov|Market Value}} in respect of all outstanding {{gmslaprov|Loans}} shall equal the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Loaned Securities}} plus applicable {{gmslaprov|Margin}} (the {{gmslaprov|Required Collateral Value}}); | |||
:(b) if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} in respect of outstanding {{gmslaprov|Loans}} together with: <br> | |||
::(i) all unpaid amounts due by the {{gmslaprov|Lender}} under this {{gmslaprov|Agreement}}; and <br> | |||
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} payable in respect of any {{gmslaprov|Non-Cash Collateral}} <br> | |||
:exceeds the aggregate of the {{gmslaprov|Required Collateral Values}} in respect of such {{gmslaprov|Loans}} together with: | |||
::(i) all unpaid amounts due by the Borrower; and | |||
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} payable in respect of such {{gmslaprov|Equivalent Securities}},<br> | |||
:{{gmslaprov|Lender}} must repay to {{gmslaprov|Borrower}} such {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} as will eliminate the excess; | |||
:(c) if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} in respect of outstanding {{gmslaprov|Loans}} together with: <br> | |||
::(i) all unpaid amounts due by the {{gmslaprov|Lender}}; and <br> | |||
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} payable in respect of any {{gmslaprov|Non-Cash Collateral}} <br> | |||
:falls below the aggregate of {{gmslaprov|Required Collateral Values}} in respect of all such {{gmslaprov|Loans}} together with: | |||
::(i) all unpaid amounts due by the Borrower; and | |||
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} payable in respect of any {{gmslaprov|Equivalent Securities}},<br> | |||
:{{gmslaprov|Borrower}} must provide such further {{gmslaprov|Collateral}} to {{gmslaprov|Lender}} as will eliminate the deficiency;<br> | |||
:(d) where a {{gmslaprov|Party}} acts as both {{gmslaprov|Lender}} and {{gmslaprov|Borrower}} under this {{gmslaprov|Agreement}}, the provisions of paragraphs {{gmslaprov|5.4}}(b) and {{gmslaprov|5.4}}(c) shall apply separately (and without duplication) in respect of {{gmslaprov|Loans}} entered into by that {{gmslaprov|Party}} as {{gmslaprov|Lender}} and {{gmslaprov|Loans}} entered into by that {{gmslaprov|Party}} as {{gmslaprov|Borrower}}. | |||
====Related Provisions==== | ====Related Provisions==== | ||
Revision as of 17:55, 11 July 2013
Commentary
To Summarise:
Unless "single Loan margining under 5.5 applies:
- (a) the aggregate Posted Collateral Market Value in respect of all outstanding Loans shall equal the aggregate Market Value of the Loaned Securities plus applicable Margin (the Required Collateral Value);
- (b) if the aggregate Market Value of the Posted Collateral in respect of outstanding Loans together with:
- (i) all unpaid amounts due by the Lender under this Agreement; and
- (ii) the Market Value of Income payable in respect of any Non-Cash Collateral
- (i) all unpaid amounts due by the Lender under this Agreement; and
- exceeds the aggregate of the Required Collateral Values in respect of such Loans together with:
- (i) all unpaid amounts due by the Borrower; and
- (ii) the Market Value of Income payable in respect of such Equivalent Securities,
- Lender must repay to Borrower such Equivalent Collateral as will eliminate the excess;
- (c) if the aggregate Market Value of the Posted Collateral in respect of outstanding Loans together with:
- (i) all unpaid amounts due by the Lender; and
- (ii) the Market Value of Income payable in respect of any Non-Cash Collateral
- (i) all unpaid amounts due by the Lender; and
- falls below the aggregate of Required Collateral Values in respect of all such Loans together with:
- (i) all unpaid amounts due by the Borrower; and
- (ii) the Market Value of Income payable in respect of any Equivalent Securities,
- Borrower must provide such further Collateral to Lender as will eliminate the deficiency;
- (d) where a Party acts as both Lender and Borrower under this Agreement, the provisions of paragraphs 5.4(b) and 5.4(c) shall apply separately (and without duplication) in respect of Loans entered into by that Party as Lender and Loans entered into by that Party as Borrower.
Related Provisions
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