Mini close-out - GMSLA Provision: Difference between revisions
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{gmslasnap|9}} | {{gmslasnap|9}} | ||
Mini | {{comm}} | ||
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 is also a useful tool in getting optimal netting analysis in [[gross jurisdiction]]s, but that is not what the clause was inserted to do. | |||
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. | 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}} | {{gmslaanatomy}} | ||
Revision as of 10:17, 20 July 2015
Commentary
Mini close-out is the method of terminating an individual Loan under a 2010 GMSLA or an 1995 OSLA where there is a settlement failure without actually closing out the whole agreement. It is also a useful tool in getting optimal netting analysis in gross jurisdictions, but that is not what the clause was inserted to do.
In a nutshell (and more detail can be found at GMSLA netting the idea is to call each loan (under a Borrower or Lender's general right to do so under Paragraph 8) before designating an Event of Default under Paragraph 10 and effecting close out under paragraph 11. Note some deft manouevring is required to get mini-closeout to work where you have term Loans in your portfolio (that is, Loans which are not callable at will under paragraph 8) or where automatic early termination applies.
update to anat|gmsla
|
Navigation 2018 Pledge GMSLA 1 · 2 · 3 · 4 · 5 · 6 · 7 · 8 · 9 · 10 · 11 · 12 · 13 · 14 · 15 · 16 · 17 · 18 · 19 · 20 · 21 · 22 · 23 · 24 · 25 · 26 · 27 · 28 · Schedule · Agency Annex Stock lending agreement comparison: Includes navigation for the 2000 GMSLA and the 1995 OSLA |
2010 GMSLA: Full wikitext · Nutshell wikitext | GMLSA legal code | GMSLA Netting
Pledge GMSLA: Hard copy (ISLA) · Full wikitext · Nutshell wikitext |
1995 OSLA: OSLA wikitext | OSLA in a nutshell | GMSLA/PGMSLA/OSLA clause comparison table
From Our Friends On The Internet: Guide to equity finance | ISLA’s guide to securities lending for regulators and policy makers