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Loaned Securities - 2000 GMSLA Provision: Difference between revisions
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Loaned Securities - 2000 GMSLA Provision (view source)
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Also, this is an easy end-run for a nefarious Borrower: once an Income record date passes, as long as it can deliver the shares back to the Lender before the actual payment date, on a literal reading of this clause it can avoid ever having to manufacture a dividend. | Also, this is an easy end-run for a nefarious Borrower: once an Income record date passes, as long as it can deliver the shares back to the Lender before the actual payment date, on a literal reading of this clause it can avoid ever having to manufacture a dividend. | ||
The 2010 {{gmsla}} deals with this by using the same expression, {{gmslaprov|Loaned Securities}}<ref>Defined exactly the same way as Loaned Securities in the {{2000gmsla}}</ | The 2010 {{gmsla}} deals with this by using the same expression, {{gmslaprov|Loaned Securities}}<ref>Defined exactly the same way as Loaned Securities in the {{2000gmsla}}</ref> in a subtly different way in Paragraph {{gmslaprov|6.1}}: | ||
:''Where the term of a {{gmslaprov|Loan}} extends over an {{gmslaprov|Income Record Date}} in respect of any {{gmslaprov|Loaned Securities}}, {{gmslaprov|Borrower}} shall, on the date such {{gmslaprov|Income}} is paid by the [[issuer]] [...] pay or deliver to {{gmslaprov|Lender}}...'' | :''Where the term of a {{gmslaprov|Loan}} extends over an {{gmslaprov|Income Record Date}} in respect of any {{gmslaprov|Loaned Securities}}, {{gmslaprov|Borrower}} shall, on the date such {{gmslaprov|Income}} is paid by the [[issuer]] [...] pay or deliver to {{gmslaprov|Lender}}...'' | ||
{{ref}} | {{ref}} | ||