Mini close-out - GMSLA Provision: Difference between revisions

Mini close-out - GMSLA Provision (view source)

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-Mini closeout is the method of terminating a {{gmsla}} or an {{osla}} in a way which ensures maximum efficacy of [[close-out netting]] in a [[gross jurisdiction]].
+{{Manual|MSG|2010|9|Clause|9|short}}
-In a nutshell (and more detail can be found at [[GMSLA netting]] the idea is to call each loan (under a {{gmslaprov|Borrower}} or {{gmslaprov|Lender}}'s general right to do so under Paragraph {{gmslaprov|8}}) before designating an {{gmslaprov|Event of Default}} under Paragraph {{gmslaprov|10}} and effecting close out under paragraph {{gmslaprov|11}}. Note some deft manouevring is required to get mini-closeout to work where you have term {{gmslaprov|Loans}} in your portfolio (that is, {{gmslaprov|Loans}} which are not callable at will under paragraph {{gmslaprov|8}}) or where [[automatic early termination]] applies.
-{{gmslaanatomy}}