Redelivery of Equivalent Collateral on termination of a Loan - 2000 GMSLA Provision

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2000 Global Master Securities Lending Agreement
A Jolly Contrarian owner’s manual

Clause 8.4 in a Nutshell
Use at your own risk, campers!

8.4 Redelivery of Equivalent Collateral on termination of a Loan

When Equivalent Securities must be redelivered by Borrower on termination of a Loan, Lender must simultaneously (subject to paragraph 5.4) return to Borrower any Cash Collateral or Equivalent Collateral provided by Borrower in respect of the Loan.
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Clause 8.4 in full

8.4 Redelivery of Equivalent Collateral on termination of a Loan

On the date and time that Equivalent Securities are required to be redelivered by Borrower on the termination of a Loan, Lender shall simultaneously (subject to paragraph 5.4 if applicable) repay to Borrower any Cash Collateral or, as the case may be, redeliver Collateral equivalent to the Collateral provided by Borrower pursuant to paragraph 5 in respect of such Loan. For the avoidance of doubt any reference in this Agreement or in any other agreement or communication between the Parties (however expressed) to an obligation to redeliver or account for or act in relation to Collateral shall accordingly be construed as a reference to an obligation to redeliver or account for or act in relation to Equivalent Collateral.
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Related agreements and comparisons

Related agreements: Click here for the same clause in the 2010 GMSLA
Comparison: Click to compare the 2000 GMSLA and 2010 GMSLA versions of this clause.

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Content and comparisons

Except for the deletion of the prefix “re” in the 2010 version, this clause is unchanged between the 2000 GMSLA and the 2010 GMSLA. Why delete the prefix “re”? Epistemic purity. If one delivers Collateral title transfer, the asset leaves your sphere of influence utterly, you have no expectation of its exact return; your claim is to the fresh delivery — not “re”delivery — of an equivalent, fungible asset, alike to the one you originally gave your counterparty in every regard, but not the same. This is fun for PHIL 101 students, but infuriates everyone else, so is best left unexplored as a topic of conversation at dinner parties etc.
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Summary

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See also

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References