Template:GMSLA 2000 5.5: Difference between revisions

{{gmslaprov|5.5}} '''{{gmslaprov|Marking to Market of Collateral during the currency of a Loan on a Loan by Loan basis}}'''<br>

If paragraph 1.3 of the Schedule indicates this paragraph {{gmslaprov|5.5}} shall apply in lieu of paragraph {{gmslaprov|5.4}}, the {{gmslaprov|Posted Collateral}} in respect of any {{gmslaprov|Loan}} shall bear from day to day and at any time the same proportion to the {{gmslaprov|Market Value}} of the {{gmslaprov|Loaned Securities}} as the {{gmslaprov|Posted Collateral}} bore at the commencement of such {{gmslaprov|Loan}}. Accordingly:

:(i) the {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} to be delivered or deposited while the {{gmslaprov|Loan}} continues shall be equal to the {{gmslaprov|Required Collateral Value}};

:(ii) if at any time on any {{gmslaprov|Business Day}} the {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} in respect of any {{gmslaprov|Loan}} exceeds the {{gmslaprov|Required Collateral Value}} in respect of such {{gmslaprov|Loan}}, {{gmslaprov|Lender}} shall (on demand) repay [[and/or]] redeliver, [[as the case may be]], to {{gmslaprov|Borrower}} such {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} as will eliminate the excess; and

:(iii} if at any time on any {{gmslaprov|Business Day}} the {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} falls below the {{gmslaprov|Required Collateral Value}}, {{gmslaprov|Borrower}} shall (on demand) provide such further {{gmslaprov|Collateral}} to {{gmslaprov|Lender}} as will eliminate the deficiency.