Template:M comp disc GMSLA 10

10. Events of Default

10.1 List of Events of Default

10.1(a): Failure to pay Collateral

10.1(b): Unremedied failure to manufacture payments

10.1(c): Failure to pay or deliver

10.1(d): Insolvency

10.1(e): Breach of warranty

10.1(f): Repudiation

10.1(g): Seizure of assets

10.1(h): Suspension from exchange

10.1(i): Unremedied failure to perform

10.2 Notification of Events of Default

10.3 Complete statement of remedies

10.4 No consequential loss

Difference between 2010 GMSLA and 2018 Pledge GMSLA

In the 2018 Pledge GMSLA we wave good by to the 2010 GMSLA’s Automatic Early Termination provision — which was only really there to slake the consciences of those worried that netting might not work. In a pledged security arrangement, it is much more old-fashioned and traditional; you’re not really relying on the cute, clever-dickish type of close-out netting that is so warily eyed by ruddy-cheeked German insolvency administrators, no no need for an AET-35 unit.

To compensate, there’s a new “breach of security agreement” Event of Default at 10.1(j). Which is nice.