Template:M summ GMSLA 6.4

Where a Borrower has called for redelivery of equivalent non-cash collateral prior to an income record date and the Lender fails to make reasonable efforts to effect the redelivery, paragraph 6.4 provides for the Lender to indemnify the Borrower against any loss directly resulting from such failure.

The indemnity only applies where the Borrower has agreed with the Lender to provide acceptable alternative collateral and has given sufficient notice of its call for redelivery of the non-cash collateral. The Lender, acting reasonably, must also have indicated to the Borrower that the proposed alternative collateral is acceptable to it (as to which, see 5.15 below). These provisions are modelled on those contained in the equities annex to the 2000 version of the 2010 GMSLA.

The parties may disapply paragraph 6.4 under paragraph 1.6 of the Schedule.