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Waiver of Immunity - GMSLA Provision: Difference between revisions
Waiver of Immunity - GMSLA Provision (view source)
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{{gmslaanat|26}} | {{gmslaanat|26}} | ||
{{sovereign immunity}} | {{sovereign immunity}} | ||
[[Sovereign immunity]] is a particular issue in an [[agency lending]] arrangement because: | |||
*Structurally, sovereigns will tend to be lenders in an agency set up | |||
*The Borrower [[title transfer]]s away a bigger slug of {{gmslaprov|collateral}} away than it borrows from the sovereign {{gmslaprov|Lender}}. | |||
*At any point, should the [[Sovereign]] decide to play [[who’s queen]], the borrower is in the hole for 5. | |||
Interestingly, a [[pledge GMSLA]] might fix this problem by never transferring collateral to the Sovereign in the first place. | |||
{{seealso}} | {{seealso}} | ||
*[[Sovereign immunity]] | *[[Sovereign immunity]] | ||