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Template:M gen GMSLA 10: Difference between revisions
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A counterparty may have on-lent, or on-collateralised, with non-cash {{gmslaprov|Collateral}} it has been posted. It may have exactly the same difficulties in getting hold of it to redeliver as a borrower may in getting hold of {{gmslaprov|Equivalent}} {{gmslaprov|Securities}}. So the remedy is to withhold the return of securities, buy in and {{isdaprov|mini close-out}} under {{gmslaprov|9.2}} which gives the aggrieved party equivalent rights, but not the right to close out the whole agreement (until there’s a failure of the mini-close out settlement amount itself).<br> | A counterparty may have on-lent, or on-collateralised, with non-cash {{gmslaprov|Collateral}} it has been posted. It may have exactly the same difficulties in getting hold of it to redeliver as a borrower may in getting hold of {{gmslaprov|Equivalent}} {{gmslaprov|Securities}}. So the remedy is to withhold the return of securities, buy in and {{isdaprov|mini close-out}} under {{gmslaprov|9.2}} which gives the aggrieved party equivalent rights, but not the right to close out the whole agreement (until there’s a failure of the mini-close out settlement amount itself).<br> | ||
{{gmslaprov|10.1(b)}}: <br> | {{gmslaprov|10.1(b)}}: '''Unremedied failure to manufacture Income''': Note the [[tedious]] back and forth of notices here. | ||
*First, the Income has to be due under the {{gmslaprov|Collateral}} or {{gmslaprov|Loaned Securities}}. | |||
*Then the person obliged under Paragraph {{gmslaprov|6}} to [[manufacture]] the {{gmslaprov|Income}} back has to fail to do so, on that due date. | |||
*Then the aggrieved party has to tell the delinquent one — note: it is not yet technically a “{{gmslaprov|Defaulting Party}}” as there is a [[grace period]] — that it has failed to make that payment, and ask it to make the payment within three {{gmslaprov|Business Day}}s. | |||
*Then the delinquent party has to fail to remediate the manifactured {{gmslaprov|Income}} payment by close on the third {{gmslaprov|Business Day}} after that notice. Then the aggreived party can notify the delinquent party — whereupon it becomes a “{{gmslaprov|Defaulting Party}}” — that it is, finally, an {{gmslaprov|Event of Default}}.<br> | |||
{{gmslaprov|10.1(c)}}: <br> | {{gmslaprov|10.1(c)}}: <br> | ||
{{gmslaprov|10.1(d)}}: <br> | {{gmslaprov|10.1(d)}}: <br> | ||