Substitutions of Collateral - GMSLA Provision: Difference between revisions

Substitutions of Collateral - GMSLA Provision (view source)

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-{{gmslasnap|5.3}}
+{{gmslaanat|5.3}}
-====Commentary====
 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 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.
+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.
-====Related Provisions====
+===[[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.
-{{gmslaanatomy}}