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Talk:Consequences of an Event of Default - GMSLA Provision: Difference between revisions
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Nutshell 2010 | Nutshell 2010 | ||
11 | 11 Consequences of an Event of Default | ||
11.1 | 11.1 If an Event of Default happens to either Party: | ||
11.2 Acceleration: The Parties’ obligations will be accelerated as at the Event of Default (the Termination Date) as follows: | 11.2 Acceleration: The Parties’ obligations will be accelerated as at the Event of Default (the Termination Date) as follows: | ||
(a) The Non-Defaulting Party will determine the Default Market Value of all amounts (and securities) due by each Party under paragraph 11.4 as at the Termination Date. | (a) The Non-Defaulting Party will determine the Default Market Value of all amounts (and securities) due by each Party under paragraph 11.4 as at the Termination Date. | ||
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Appropriate Market is the most appropriate market for any securities determined by the Non-Defaulting Party; | Appropriate Market is the most appropriate market for any securities determined by the Non-Defaulting Party; | ||
Default Valuation Time means the Close of Business in the Appropriate Market on the fifth dealing day after the Event of Default (or where Automatic Early Termination applies, the day the Non Defaulting Party became aware of it); | Default Valuation Time means the Close of Business in the Appropriate Market on the fifth dealing day after the Event of Default (or where Automatic Early Termination applies, the day the Non Defaulting Party became aware of it); | ||
Deliverable Securities means Equivalent Securities or Equivalent Non-Cash Collateral to be delivered by the Defaulting Party; | Deliverable Securities means Equivalent Securities or Equivalent Non-Cash Collateral to be delivered by the Defaulting Party; | ||
Net Value of any securities means the Non-Defaulting Party’s reasonable opinion of their fair Market Value less (where Lender is the Defaulting Party) or plus (where Borrower is the Defaulting Party), all reasonable costs of any transaction needed under paragraph 11.4 or 11.5 (Transaction Costs); and | |||
Receivable Securities means Equivalent Securities or Equivalent Non-Cash Collateral to be delivered to the Defaulting Party. | Receivable Securities means Equivalent Securities or Equivalent Non-Cash Collateral to be delivered to the Defaulting Party. | ||
11.4 Transactions and quotes: If, between the Termination Date and the Default Valuation Time: | 11.4 Transactions and quotes: If, between the Termination Date and the Default Valuation Time: | ||