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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. | ||
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}}. |