Talk:Marking to Market of Collateral during the currency of a Loan on aggregated basis - GMSLA Provision: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
No edit summary
No edit summary
Line 1: Line 1:
2018
2018


5.4 Instructions relating to the Required Collateral Value and responsibility for the Custodian
5.3 Marking to Market of Collateral during the currency of a Loan: Unless otherwise agreed between the Parties:
5.4(a) Unless otherwise agreed, no later than the Notification Time on each Business Day:
5.3(a) the aggregate Market Value of the Posted Collateral in respect of all outstanding Loans and, as of the relevant Settlement Date or any earlier time agreed between the Parties for the Delivery of Collateral with respect to any Unsettled Loans, such Unsettled Loans, shall equal the aggregate of:
5.4(a)(i) each Party will notify the other Party of its determination of the Required Collateral Value; and
5.3(a)(i) the Market Values of Securities Equivalent to the Loaned Securities; plus
5.4(a)(ii) each Party shall notify the Custodian in accordance with the terms of the Control Agreement of the Required Collateral Value so determined by it.
5.3(a)(ii) all amounts (if any) due and payable by Borrower under this Agreement but which are unpaid; plus
5.4(b) Borrower will be liable for the acts or omissions of Custodian to the same extent that Borrower would be liable hereunder for its own acts or omissions and any such act or omission of Custodian will be deemed to be the act or omission of Borrower for purposes of Paragraph 10.1. Lender will not be liable for the acts or omissions of Custodian.
5.3(a)(iii) if agreed between the Parties and if the Income Record Date has occurred in respect of any Securities Equivalent to Loaned Securities, the amount or Market Value of Income payable in respect of such Equivalent Securities in respect of such Loans; plus
5.4(c) Any obligation of Lender to instruct Custodian to transfer Posted Collateral to Borrower will be deemed satisfied by Lender sending appropriate instructions to Custodian in accordance with the terms of the Control Agreement. For the avoidance of doubt, Lender will bear no liability for any failure by Custodian to comply with such instructions and no failure by the Custodian to transfer Posted Collateral to Borrower under this Agreement will constitute an Event of Default with respect to Lender.
5.3(a)(iv) if agreed between the Parties, any amounts which have accrued pursuant to paragraph 7
(the Required Collateral Value);
5.3(b) if on any Business Day the aggregate Market Value of the Posted Collateral exceeds the Required Collateral Value applicable on that day, Lender shall in the manner provided by the Control Agreement instruct Custodian to transfer to Borrower from the relevant Secured Account by Close of Business on the relevant Business Day Posted Collateral having a Market Value at the date of transfer as close as practicable to (but not exceeding) the amount of the excess;
5.3(c) if on any Business Day the aggregate Market Value of the Posted Collateral falls below the Required Collateral Value applicable on that day, Borrower shall in the manner provided by the Control Agreement deliver and, in the case of Cash Collateral, transfer into the relevant Secured Account by Close of Business on the relevant Business Day, such further Collateral having a Market Value as at the date of transfer as close as practicable to (but not less than) the amount of the deficiency; and
5.3(d) each Party agrees that any transfer of Collateral into or out of the Secured Accounts will be effected only in accordance with the Control Agreement.

Revision as of 16:13, 8 July 2020

2018

5.3 Marking to Market of Collateral during the currency of a Loan: Unless otherwise agreed between the Parties: 5.3(a) the aggregate Market Value of the Posted Collateral in respect of all outstanding Loans and, as of the relevant Settlement Date or any earlier time agreed between the Parties for the Delivery of Collateral with respect to any Unsettled Loans, such Unsettled Loans, shall equal the aggregate of: 5.3(a)(i) the Market Values of Securities Equivalent to the Loaned Securities; plus 5.3(a)(ii) all amounts (if any) due and payable by Borrower under this Agreement but which are unpaid; plus 5.3(a)(iii) if agreed between the Parties and if the Income Record Date has occurred in respect of any Securities Equivalent to Loaned Securities, the amount or Market Value of Income payable in respect of such Equivalent Securities in respect of such Loans; plus 5.3(a)(iv) if agreed between the Parties, any amounts which have accrued pursuant to paragraph 7 (the Required Collateral Value); 5.3(b) if on any Business Day the aggregate Market Value of the Posted Collateral exceeds the Required Collateral Value applicable on that day, Lender shall in the manner provided by the Control Agreement instruct Custodian to transfer to Borrower from the relevant Secured Account by Close of Business on the relevant Business Day Posted Collateral having a Market Value at the date of transfer as close as practicable to (but not exceeding) the amount of the excess; 5.3(c) if on any Business Day the aggregate Market Value of the Posted Collateral falls below the Required Collateral Value applicable on that day, Borrower shall in the manner provided by the Control Agreement deliver and, in the case of Cash Collateral, transfer into the relevant Secured Account by Close of Business on the relevant Business Day, such further Collateral having a Market Value as at the date of transfer as close as practicable to (but not less than) the amount of the deficiency; and 5.3(d) each Party agrees that any transfer of Collateral into or out of the Secured Accounts will be effected only in accordance with the Control Agreement.

Retrieved from "https://jollycontrarian.com/index.php?title=Talk:Marking_to_Market_of_Collateral_during_the_currency_of_a_Loan_on_aggregated_basis_-_GMSLA_Provision&oldid=45881"