|
|
| Line 1: |
Line 1: |
| {{gmslaanat|5.3}} | | {{Manual|MSG|2010|5.3|Clause|6(F)|short}} |
| Unlike the {{csa}}, a {{gmslaprov|Borrower}} under the {{gmsla}} can require a Lender to switch {{gmslaprov|Collateral}} posted to it with {{gmslaprov|Alternative 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 Paragraph {{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.
| |
| | |
| ===[[Pledge GMSLA]]===
| |
| The [[Pledge GMSLA]] does not have an equivalent provision. This is not for any reason that timidity — counsel drafting it (who shall remain nameless but once upon a time there was a bit of nominative determinism for those inclined to guess) thought it was a bit hard to deal with the security issues relating to substitution, so they just didn’t. Stuff and nonsense, we at the [[JC]] say.
| |