Settlement failures - GMRA Provision

2000 Global Master Repurchase Agreement
A Jolly Contrarian owner’s manual™

Resources and navigation

Resources: 2010 GMRA: Full wikitext · Nutshell wikitext Navigation 2000 GMRA Table of Contents · 1 · 2 · 3 · 4 · 5 · 6 · 7 · 8 · 9 · 10 · 11 · 12 · 13 · 14 · 15 · 16 · 17 · 18 · 19 · 20 · 21 · Schedule · Equities Annex: EA 1 · EA 2 · EA 3 · EA 4 · EA 5 · Buy/Sellback Annex · BSA 1 · BSA 2 · BSA 3 · BSA 4 · BNA 5 Index: Click ᐅ to expand: GMRA

Paragraph 10(h) in a Nutshell™

Use at your own risk, campers!

10(h) If Buyer fails to deliver Equivalent Securities on the Repurchase Date Seller may (i) Refund: require Buyer immediately to refund the Repurchase Price, if already paid; (ii) Post margin: require Buyer to collateralise any outstanding Transaction Exposure with Cash Margin; (iii) Mini close-out: by written notice immediately terminate only the affected Transaction under paragraph 10(c), treating “the Repurchase Date” as the date of the notice, and disregarding references to transfer of Cash Margin and delivery of Equivalent Margin Securities. view template

Full text of Paragraph 10(h)

10(h) If Buyer fails to deliver Equivalent Securities to Seller on the applicable Repurchase Date Seller may (i) if it has paid the Repurchase Price to Buyer, require Buyer immediately to repay the sum so paid; (ii) if Seller has a Transaction Exposure to Buyer in respect of the relevant Transaction, require Buyer from time to time to pay Cash Margin at least equal to such Transaction Exposure; (iii) at any time while such failure continues, by written notice to Buyer declare that that Transaction (but only that Transaction) shall be terminated immediately in accordance with sub paragraph 10(c) above (disregarding for this purpose references in that sub paragraph to transfer of Cash Margin and delivery of Equivalent Margin Securities and as if references to the Repurchase Date were to the date on which notice was given under this sub¬paragraph). view template

Related agreements and comparisons

Related agreements: Click here for the same clause in the 1996 MRA, when we get round to finding out the first thing about it. Comparison: Knowing and, really, caring very little about other kinds of repo agreement, we have nothing presently to compare the Global Master Repurchase Agreement with.