Equivalent - GMSLA Provision: Difference between revisions

The key thing to observe is that “{{tag|equivalent}}" doesn't mean “similar" or “somewhat like the thing I gave you". It means THE EXACT SAME THING. Same [[CUSIP]]; same [[ISIN]]. Fully [[fungible]]. 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 individual certificate number<ref>i.e., if it where a [[security-printed]] physical certificate form which, in these enlightened, electronic, [[dematerialised]] times, it simply won't be.</ref>, that I gave you, as long as it is identical to and [[fungible]] with it.

The reason for that is that a [[stock loan]] is a [[title transfer arrangement]]: since you are free to do with the stock I gave you as you please, you can (and probably will) sell it to someone else. So I can't very well expect you to give exactly the same item back to me. [[2.3 - GMSLA Provision|It's ''not'' a loan, after all]]. And actually if I were able to ask for the same item back, it would interfere with the legal characterisation of our {{tag|stock loan}} as a {{tag|title transfer}} arrangement. If you’re the sort of person that likes a [[true sale opinion]].