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Manufactured payments in respect of Loaned Securities - GMSLA Provision: Difference between revisions
Manufactured payments in respect of Loaned Securities - GMSLA Provision (view source)
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{{gmslaanat|6.2}}In other words the {{gmslaprov|Borrower}} pays what the {{gmslaprov|Lender}} would have received net, by reference to the Lender's own situation. This means that the {{gmslaprov|Lender}} doesn't need to worry about different rates of tax or withholding applying to the {{gmslaprov|Borrower}}. Makes sense, really. | {{gmslaanat|6.2}}In other words the {{gmslaprov|Borrower}} pays what the {{gmslaprov|Lender}} would have received net, by reference to the Lender's own situation. This means that the {{gmslaprov|Lender}} doesn't need to worry about different rates of tax or withholding applying to the {{gmslaprov|Borrower}}. The {{gmslaprov|Borrower}}, being the person who wanted to borrow the securities, takes the risk of untoward taxes related to its own position (as opposed to the {{gmslaprov|Lender}}’s position) — if the tax is one the {{gmslaprov|Lender}} would have suffered anyway, the {{gmslaprov|Borrower}} doesn't have to account for this. | ||
Makes sense, really. | |||