Delivery obligations to be reciprocal - GMSLA Provision: Difference between revisions

Delivery obligations to be reciprocal - GMSLA Provision (view source)

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	Otherwise a creditworthy {{gmslaprov\|Borrower}} would be obliged to redeliver {{gmslaprov\|Equivalent}} {{gmslaprov\|Securities}} to a bankrupt {{gmslaprov\|Lender}} even though it did not expect to receive its {{gmslaprov\|Equivalent}} {{gmslaprov\|Collateral}} back, which would prejudice its ability to effect a {{gmslaprov\|mini close-out}} and set off its obligation to deliver {{gmslaprov\|Equivalent}} {{gmslaprov\|Securities}} against that {{gmslaprov\|Collateral}} return.		Otherwise a creditworthy {{gmslaprov\|Borrower}} would be obliged to redeliver {{gmslaprov\|Equivalent}} {{gmslaprov\|Securities}} to a bankrupt {{gmslaprov\|Lender}} even though it did not expect to receive its {{gmslaprov\|Equivalent}} {{gmslaprov\|Collateral}} back, which would prejudice its ability to effect a {{gmslaprov\|mini close-out}} and set off its obligation to deliver {{gmslaprov\|Equivalent}} {{gmslaprov\|Securities}} against that {{gmslaprov\|Collateral}} return.

			{{nuts\|gmsla\|8.6}}