Net Value determination where unable to sell Securities - GMSLA Provision
GMSLA Anatomy™
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11. Consequences of an Event of Default
- 11.1 Application of 11.2 to 11.7 following Event of Default
- 11.2 Delivery and payment obligations following Event of Default
- 11.3 Definition of Default Market Value
- 11.4 Determination of Default Market Value
- 11.5 Net Value determination where unable to sell Securities
- 11.6 Where Non-Defaulting Party has not determined Default Market Value
- 11.7 Other costs, expenses and interest payable in consequence of an Event of Default
- 11.8 Set-off
If it can't determine a Default Market Value under 11.2, 11.3 and 11.4, the Non Defaulting Party can just make one up. Within reason, of course. Valuation is one of the great intractable ontological conundrums of the financial markets: in few other contexts dows a jobbing attorney look so balefully into the formless void where her intricate hermeneutic system runs out of rope. It is really just an infinite vacuum. Even the most assiduous haggler must at some stage just wave away the dealer polls, arbitration protocols, mutually appointed experts and give up.