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| {{gmslaanat|9}} | | {{Manual|MSG|2010|9|Clause|9|short}} |
| Mini close-out is the method of terminating an individual {{gmslaprov|Loan}} under a {{gmsla}} or an {{osla}} where there is a settlement failure without actually closing out the whole agreement. It applies therefore to a failure to ''return'' {{gmslaprov|equivalent}} {{gmslaprov|securities}} or {{gmslaprov|equivalent}} {{gmslaprov|collateral}} — these can be a function of market dislocations, upstream counterparty failures and liquidity events affecting the asset in question, but not to the failure to deliver {{gmslaprov|collateral}} in the first place, seeing as if one kind of {{gmslaprov|collateral}} is not available, it is in the {{gmslaprov|Borrower}}’s gift to deliver something else that meets eligibility criteria, so its failure to pony up collateral always looks like a [[credit]] failure and will count as an {{gmslaprov|Event of Default}}.
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| ===[[GMSLA Netting]]===
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| Since prudential requirements to have [[netting opinion]]s do not apply within single transactions, one does not need a mini close-out provision to net within transactions under a GMSLA. That happens as of right. Therefore if, as is often the case, your loan portfolio is all the “same way round” — if you are borrowing from, but never lending to, a lender in a gross jurisdiction, then netting doesn’t really do anything for you. Your problem will be your {{gmslaprov|collateral}} [[haircut]], for which you will be an unsecured creditor of the lender. To fix this, a pledge GMSLA is what you are looking for.
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| ===Non-affected party’s option===
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| Note that {{gmslaprov|mini close-out}} is the [[non-affected party|non-affected party’s]] option: If a {{gmslaprov|Borrower}}, on terminating a {{gmslaprov|Loan}}, cannot then redeliver the borrowed {{gmslaprov|Securities}} (because of an upstream failure), it cannot force a {{gmslaprov|mini close-out}}.
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| '''Odd spot''': See the peculiar impact [[mini-closeout]] has on {{isdaprov|Default Under Specified Transaction}} under the {{isdama}}.
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| {{sa}}
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| *[[GMSLA Netting]]
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| *[[Pledge GMSLA]]
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| *{{isdaprov|DUST}}
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