Standard settlement time - GMSLA Provision

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GMSLA Anatomy


In a Nutshell Clause 8.1:

8.1: Lender’s right to terminate a Loan: Unless it is a term Loan, Lender may terminate a Loan and call for Equivalent Securities by giving notice on any Business Day. Lender must allow the Borrower at least the standard settlement cycle to return Equivalent Securities.
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2010 GMSLA full text of Clause 8.1:

8.1 Lender’s right to terminate a Loan
Subject to paragraph 11 and the terms of the relevant Loan, Lender shall be entitled to terminate a Loan and to call for the delivery of all or any Equivalent Securities at any time by giving notice on any Business Day of not less than the standard settlement time for such Equivalent Securities on the exchange or in the clearing organisation through which the Loaned Securities were originally delivered. Borrower shall deliver such Equivalent Securities not later than the expiry of such notice in accordance with Lender’s instructions.
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2010 GMSLA: Full wikitext · Nutshell wikitext | GMLSA legal code
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1995 OSLA: Full wikitext · Nutshell wikitext | GMSLA Netting
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Well, not strictly speaking a 2010 GMSLA provision — more a textual reference, in clauses 8.1 the “standard settlement time” is not defined in the 2010 GMSLA but worth mentioning that, having recalled a Loan, a Lender must allow at least a standard settlement cycle to get the securities back. Which stands to reason, if you think about it. A Borrower who terminates the loan can send them back immediately - it being harder (but in my experience not impossible) to take yourself by surprise.

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