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Failure by either Party to deliver - GMSLA Provision: Difference between revisions
Failure by either Party to deliver - GMSLA Provision (view source)
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Note also the clear exclusion of indirect and [[consequential loss]]es, as well as losses to which the Transferee is contributorily [[negligent]]. If you are thinking I just made up the [[adjective]] “contributorily”, and were about to conclude I’m maybe a bit ''[[reckless]]''<ref>I expect [[Mediocre lawyer|careful attorneys]] to be rolling around on the floor laughing at this ''bon mot''.</ref>* you might be interested to know it is actually a [https://en.wiktionary.org/wiki/contributorily word]. | Note also the clear exclusion of indirect and [[consequential loss]]es, as well as losses to which the Transferee is contributorily [[negligent]]. If you are thinking I just made up the [[adjective]] “contributorily”, and were about to conclude I’m maybe a bit ''[[reckless]]''<ref>I expect [[Mediocre lawyer|careful attorneys]] to be rolling around on the floor laughing at this ''bon mot''.</ref>* you might be interested to know it is actually a [https://en.wiktionary.org/wiki/contributorily word]. | ||
===Replacement costs and ISDA hedging language=== | ===Default interest=== | ||
Does it make sense to replace this clause with some convoluted shtick about the costs of | Are references here to interest to, like ''default'' interest under Clause 11.7? And if so are we in a world of LIBOR remediation? | ||
Well, this old fellow’s opinion is no. 11.7 is specific to costs following actual close out on an {{gmslaprov|Event of Default}} (a buy-in ''isn’t'' an {{gmslaprov|Event of Default}}), and only on professional expenses. The vibe here is ''you reimburse me my ''actual'' costs''. So, the ''actual interest'' cost I incurred in funding the securities I bought in, rather than some abstract derivative notion of my costs represented by a [[benchmark]]. | |||
===Replacement costs and [[ISDA]] [[hedging]] language=== | |||
Does it make sense to replace this clause with some convoluted shtick about the costs of {{isdaprov|Replacement Transaction}}s or otherwise hedging the innocent party’s exposure? To determine follow this flow chart: | |||
[[File:GS Tree.png|frameless|470px|center|Not called the [[vampire squid]] for nothing, you know.]] | [[File:GS Tree.png|frameless|470px|center|Not called the [[vampire squid]] for nothing, you know.]] | ||