Equivalent - GMSLA Provision: Difference between revisions

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Equivalent - GMSLA Provision (view source)

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{{gmslasnap|Equivalent}}
{{fullanat|gmsla|Equivalent|2010}}
====Commentary====
Notice under {{gmslaprov|6.7}} is the notice required to participate in a corporate action.
Notice under {{gmslaprov|6.7}} is the notice required to participate in a corporate action.
 
This is a beast of a provision to parse. What I think it means in summary is this:
This is a beast of a provision to Parse. What I think it means in summary is this:
{{nuts|GMSLA|Equivalent}}
 
{{box|'''Equivalent''': in relation to any securities, securities that are fungible with the securities in question, provided that: <br>
:(a) Where the securities in question are partly paid or have been converted, subdivided, consolidated, made the subject of a takeover, rights of pre-emption, or otherwise include rights to receive securities, it includes securities fungible with those to which a holder would be entitled following such an event (assuming the holder has complied with all formalities to qualify for the entitlement) and provided that the party being paid the equivalent amount has given notice to the holder and paid the holder all sums required in time for the holder to exercise those rights.  <br>
:(b) Where the securities in question:  <br>
::(i) have been redeemed, it means a sum of money equivalent to the proceeds of the redemption;  <br>
::(ii) are partly paid and are subject to a call, it means securities fungible with the Securities in question, provided that party receiving the equivalent securities has paid the holder an amount equal to the sum due in respect of the call;  <br>
::(iii) are subject to a capitalisation issue, it includes securities fungible with those allotted by way of bonus on the securities in question;  <br>
::(iv) are subject to an event similar to any of the foregoing events it means, Securities fungible with the securities in question, together with (or if the context requires replaced by) a cash amount or securities fungible with those received by the holder in connection with the event; <br>
}}


the key thing to observe is that "{{tag|equivalent}}" doesn't mean "of a similar type" or "broadly somewhat like the thing I gave you". It means THE EXACT SAME THING. Same [[cusip]]; same [[isin]]. Nothing else will do. The only distinction that "equivalent" permits is that the security does not have to be the precise security, down to the certificate number, that I gave you, as long as it is identical to and fungible with it.
the key thing to observe is that "{{tag|equivalent}}" doesn't mean "of a similar type" or "broadly somewhat like the thing I gave you". It means THE EXACT SAME THING. Same [[cusip]]; same [[isin]]. Nothing else will do. The only distinction that "equivalent" permits is that the security does not have to be the precise security, down to the certificate number, that I gave you, as long as it is identical to and fungible with it.
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