Talk:Lender’s failure to deliver Equivalent Collateral - GMSLA Provision: Difference between revisions

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-.2 Lender’s failure to deliver Equivalent Collateral: If Lender fails to deliver Equivalent Collateral comprising Non Cash Collateral in accordance with paragraph 8.4 or 8.5, Borrower may:
+.2 Failure by either Party to deliver or instruct delivery: Where Borrower fails to deliver Equivalent Securities, or Lender fails to instruct Custodian to deliver Posted Collateral, in either case by the time required under this Agreement or within such other period as may be agreed between such Party (the Transferor) and the other Party (the Transferee), and the Transferee:
-(a) elect to continue the Loan (which, for the avoidance of doubt, shall continue to be taken into account for the purposes of paragraph 5.4 or 5.5 as applicable); or
+(a) incurs interest, overdraft or similar costs and expenses; or
-(b) at any time while such failure continues, by written notice to Lender declare that that Loan (but only that Loan) shall be terminated immediately in accordance with paragraph 11.2 as if
+(b) incurs costs and expenses as a direct result of a Buy-in exercised against it by a third party,
-(i) an Event of Default had occurred in relation to the Lender,
+then the Transferor agrees to pay within one Business Day of a demand from the Transferee and hold harmless the Transferee with respect to all reasonable costs and expenses listed in sub-paragraphs (a) and (b) above properly incurred which arise directly from such failure other than
-(ii) references to the Termination Date were to the date on which notice was given under this sub paragraph, and
+(i) such costs and expenses which arise from the negligence or wilful default of the Transferee and
-(iii) the Loan were the only Loan outstanding.
+(ii) any indirect or consequential losses.
-For the avoidance of doubt, any such failure shall not constitute an Event of Default (including under paragraph 10.1(i)) unless the Parties otherwise agree.