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Substitutions of Collateral - GMSLA Provision: Difference between revisions
Substitutions of Collateral - GMSLA Provision (view source)
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{{gmslasnap|5.3}} | {{gmslasnap|5.3}} | ||
====Commentary==== | ====Commentary==== | ||
Unlike the {{csa}}, a Borrower under the {{gmsla}} can require a Lender to switch Collateral posted to it with Alterntative Collateral (provided it is acceptable to the Lender, which it will be if it meets the definition of Collateral and is listed in Schedule 1). By contrast under the CSA, a switch of posted | Unlike the {{csa}}, a {{gmslaprov|Borrower}} under the {{gmsla}} can require a Lender to switch {{gmslaprov|Collateral}} posted to it with {{gmslaprov|Alterntative Collateral}} (provided it is acceptable to the {{gmslaprov|Lender}}, which it will be if it meets the definition of {{gmslaprov|Collateral}} and is listed in {{gmslaprov|Schedule 1}}). | ||
By contrast, under Paragrpah {{csaprov|3(c)}} of the CSA, a switch of posted Collateral requires the consent of the holding party (see {{csaprov|3(c)(ii)}}). The FOA Exchange-Traded Derivatives Agreement is similar to the ISDA CSA. | |||
====Related Provisions==== | ====Related Provisions==== | ||