Template:Gmsla 10 comp

Redlines

2010 ⇒ 2018: Redline of the 2010 GMSLA vs. the 2018 Pledge GMSLA: comparison (and in reverse)

Discussion

The major differences between the 2010 GMSLA and 2018 Pledge GMSLA Events of Default are:

1. Collateral obligations: Under the 2010 GMSLA it is bilateral and refers to Cash Collateral and the Delivery, but not return, of non-cash Collateral, whereas the 2018 Pledge GMSLA makes any failure to meet Collateral obligations an Event of Default.
2. Manufactured income: Under the 2010 GMSLA it is bilateral; under the 2018 Pledge GMSLA it applies against the Borrower only.
3. Failure to Pay or Deliver: Under the 2010 GMSLA it is bilateral; under the 2018 Pledge GMSLA it applies against the Borrower only.
4. Insolvency: There is an Automatic Early Termination trigger under the 2010 GMSLA but not the 2018 Pledge GMSLA.
5. The remainder of the Events of Default are the same as between the two versions, but the 2018 Pledge GMSLA surprises us at the last moment with a new subparagraph 10.1(j) containing a brand new “breach of security agreement” Event of Default.

Which is nice.