Template:GMSLA 2010 11.3: Difference between revisions

{{gmslaprov|11.3}} For the purposes of this {{gmslaprov|Agreement}}, the {{gmslaprov|Default Market Value}} of any {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} in the form of a {{gmslaprov|Letter of Credit}} shall be zero and of any {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or any other {{gmslaprov|Equivalent}} {{gmslaprov|Non-Cash Collateral}} shall be determined in accordance with paragraphs {{gmslaprov|11.4}} to {{gmslaprov|11.6}} below, and for this purpose: <br>

:(a) the {{gmslaprov|Appropriate Market}} means, in relation to securities of any description, the market which is the most appropriate market for securities of that description, as determined by the {{gmslaprov|Non Defaulting Party}}; <br>

:(b) the {{gmslaprov|Default Valuation Time}} means, in relation to an {{gmslaprov|Event of Default}}, the close of business in the {{gmslaprov|Appropriate Market}} on the fifth dealing day after the day on which that {{gmslaprov|Event of Default}} occurs or, where that {{gmslaprov|Event of Default}} is the occurrence of an {{gmslaprov|Act of Insolvency}} in respect of which under paragraph {{gmslaprov|10.1(d)}} no notice is required from the {{gmslaprov|Non Defaulting Party}} in order for such event to constitute an {{gmslaprov|Event of Default}}, the close of business on the fifth dealing day after the day on which the {{gmslaprov|Non Defaulting Party}} first became aware of the occurrence of such {{gmslaprov|Event of Default}}; <br>

:(c) {{gmslaprov|Deliverable Securities}} means {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Non-Cash Collateral}} to be delivered by the {{gmslaprov|Defaulting Party}}; <br>

:(d) {{gmslaprov|Net Value}} means at any time, in relation to any {{gmslaprov|Deliverable Securities}} or {{gmslaprov|Receivable Securities}}, the amount which, in the reasonable opinion of the {{gmslaprov|Non Defaulting Party}}, represents their fair market value, having regard to such pricing sources and methods (which may include, without limitation, available prices for securities with similar maturities, terms and credit characteristics as the relevant {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}) as the {{gmslaprov|Non Defaulting Party}} considers appropriate, less, in the case of {{gmslaprov|Receivable Securities}}, or plus, in the case of D{{gmslaprov|eliverable Securities}}, all {{gmslaprov|Transaction Costs}} incurred or reasonably anticipated in connection with the purchase or sale of such securities; <br>

:(e) {{gmslaprov|Receivable Securities}} means {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Non-Cash Collateral}} to be delivered to the {{gmslaprov|Defaulting Party}}; and <br>

:(f) {{gmslaprov|Transaction Costs}} in relation to any transaction contemplated in paragraph {{gmslaprov|11.4}} or {{gmslaprov|11.5}} means the reasonable costs, commissions (including internal commissions), fees and expenses (including any mark up or mark down or premium paid for guaranteed delivery) incurred or reasonably anticipated in connection with the purchase of {{gmslaprov|Deliverable Securities}} or sale of {{gmslaprov|Receivable Securities}}, calculated on the assumption that the aggregate thereof is the least that could reasonably be expected to be paid in order to carry out the transaction.<br>