Other costs, expenses and interest payable in consequence of an Event of Default - GMSLA Provision: Difference between revisions

{{gmslaanat|11.7}}This is the {{gmslaprov|Default Interest}} provision of the {{gmsla}}. Note a potentially troublesome reference to [[LIBOR]] in there, seeing as {{t|LIBOR}} is being phased out, though it is only a fall back, and only for {{gmslaprov|Default Interest}} on its legal fees (once a party has failed to meet its payment obligations) so, while there are more cataclysmic threats to the capital markets than this, that won’t stop financial services firms across the western world diverting key internal risk management resource towards remediating it, generating 18 months’ meaningful employment for an army of [[Contractor|contractors]] of course.

*This only captures [[interest]] ''on professional expenses'' incurred in [[Close out|closing out]] a {{gmsla}}. It corresponds to Clause {{gmraprov|10(f)}} of the {{gmra}}, which is written in similar terms.

*This would ''not'' capture a “{{gmslaprov|mini close-out}}” under {{gmslaprov|9.1(b)}} or {{gmslaprov|9.2(b)}} as a result of a settlement fail under normal market procedures. . These are treated ''as if'' they were {{gmslaprov|Events of Default}}, but they are clearly deemed ''not'' to be {{gmslaprov|Events of Default}}. For those you pay the innocent party’s ''actual'' [[interest]] costs, not its theoretical ones, so there is no need to refer to a [[benchmark]]

*Clause {{gmraprov|10(f)}}, being the equivalent (and similar) part of the {{gmra}}.