Marking to Market of Collateral during the currency of a Loan on aggregated basis - GMSLA Provision: Difference between revisions

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Unless "single {{gmslaprov|Loan}} margining under {{gmslaprov|5.5}} applies:  
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}});
:(a) '''{{gmslaprov|Required Collateral Value}}''': The aggregate {{gmslaprov|Market Value}} of {{gmslaprov|Posted Collateral}} in respect of all outstanding {{gmslaprov|Loans}} must equal the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Loaned Securities}} plus applicable {{gmslaprov|Margin}}.
:(b) if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} in respect of outstanding {{gmslaprov|Loans}} together with: <br>
:(b) '''Excess {{gmslaprov|Collateral}}''': if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} together with: <br>
::(i) all unpaid amounts due by the {{gmslaprov|Lender}} under this {{gmslaprov|Agreement}}; and <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>
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Non-Cash Collateral}} <br>
:exceeds the aggregate of the {{gmslaprov|Required Collateral Values}} in respect of such {{gmslaprov|Loans}} together with:  
:exceeds the aggregate of the {{gmslaprov|Required Collateral Values}} together with:  
::(i) all unpaid amounts due by the Borrower; and  
::(i) all unpaid amounts due by the {{gmslaprov|Borrower}}; and  
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} payable in respect of such {{gmslaprov|Equivalent Securities}},<br>  
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on the {{gmslaprov|Equivalent Securities}},<br>  
:{{gmslaprov|Lender}} must repay to {{gmslaprov|Borrower}} such {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} as will eliminate the excess;
:{{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>
:(c) '''{{gmslaprov|Collateral}} Deficiency''': if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} together with: <br>
::(i) all unpaid amounts due by the {{gmslaprov|Lender}}; and <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>
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Non-Cash Collateral}} <br>
:falls below the aggregate of {{gmslaprov|Required Collateral Values}} in respect of all such {{gmslaprov|Loans}} together with:  
:falls below the aggregate {{gmslaprov|Required Collateral Value}} together with:  
::(i) all unpaid amounts due by the Borrower; and  
::(i) all unpaid amounts due by the {{gmslaprov|Borrower}}; and  
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} payable in respect of any {{gmslaprov|Equivalent Securities}},<br>
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Equivalent Securities}},<br>
:{{gmslaprov|Borrower}} must provide such further {{gmslaprov|Collateral}} to {{gmslaprov|Lender}} as will eliminate the deficiency;<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}}.
:(d) '''Shorts and Longs''': 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 18:04, 11 July 2013

Template:Gmslasnap

Commentary

To Summarise:

Unless "single Loan margining under 5.5 applies:

(a) Required Collateral Value: The aggregate Market Value of Posted Collateral in respect of all outstanding Loans must equal the aggregate Market Value of the Loaned Securities plus applicable Margin.
(b) Excess Collateral: if the aggregate Market Value of the Posted Collateral together with:
(i) all unpaid amounts due by the Lender; and
(ii) the Market Value of Income due on any Non-Cash Collateral
exceeds the aggregate of the Required Collateral Values together with:
(i) all unpaid amounts due by the Borrower; and
(ii) the Market Value of Income due on the Equivalent Securities,
Lender must repay to Borrower such Equivalent Collateral as will eliminate the excess;
(c) Collateral Deficiency: if the aggregate Market Value of the Posted Collateral together with:
(i) all unpaid amounts due by the Lender; and
(ii) the Market Value of Income due on any Non-Cash Collateral
falls below the aggregate Required Collateral Value together with:
(i) all unpaid amounts due by the Borrower; and
(ii) the Market Value of Income due on any Equivalent Securities,
Borrower must provide such further Collateral to Lender as will eliminate the deficiency;
(d) Shorts and Longs: 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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