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===Gross Jurisdictions=== | ===Gross Jurisdictions=== | ||
Upon the [[insolvency]] of a Counterparty in a [[non-netting jurisdiction]], provided a {{gmslaprov|Non-Defaulting Party}} terminates each {{gmslaprov|Loan}} individually under the "[[mini-closeout]] | Upon the [[insolvency]] of a Counterparty in a [[non-netting jurisdiction]], provided a {{gmslaprov|Non-Defaulting Party}} terminates each {{gmslaprov|Loan}} individually under the "[[mini-closeout]]” method before it designates an {{gmslaprov|Event of Default}} with respect to the whole {{gmslaprov|Agreement}}, the worst-case scenario is to aggregate the market value of each “{{gmslaprov|Loan}}” which is in the money to the {{gmslaprov|Non-Defaulting Party}} (i.e., its net value having taken into account {{gmslaprov|Posted Collateral}} held against that {{gmslaprov|Loan}}), without taking into account the market value of any {{gmslaprov|Loan}} which is [[out of the money]] for the {{gmslaprov|Non Defaulting Party}}. | ||
The “unit of account” under the {{tag|GMSLA}} (the equivalent of a “{{isdaprov|transaction}}” under an {{isdama}}) is a “{{gmslaprov|Loan}}”, which is defined as a [[title transfer]] of {{gmslaprov|Securities}} against a transfer of {{gmslaprov|Collateral}}, with a simultaneous agreement to transfer back {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} against {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}) Unless agreed otherwise, each {{gmslaprov|Loan}} under a GMSLA is terminable by either party at any time without “cause”.<br> | The “unit of account” under the {{tag|GMSLA}} (the equivalent of a “{{isdaprov|transaction}}” under an {{isdama}}) is a “{{gmslaprov|Loan}}”, which is defined as a [[title transfer]] of {{gmslaprov|Securities}} against a transfer of {{gmslaprov|Collateral}}, with a simultaneous agreement to transfer back {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} against {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}) Unless agreed otherwise, each {{gmslaprov|Loan}} under a GMSLA is terminable by either party at any time without “cause”.<br> |