Template:GMSLA 2010 11.4: Difference between revisions

{{gmslaprov|11.4}} If between the Termination Date and the {{gmslaprov|Default Valuation Time}}: <br>

:{{gmslaprov|11.4(a)}} the {{gmslaprov|Non Defaulting Party}} has sold, in the case of {{gmslaprov|Receivable Securities}}, or purchased, in the case of {{gmslaprov|Deliverable Securities}}, securities which form part of the same issue and are of an identical type and description as those {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or that {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}, (and regardless as to whether or not such sales or purchases have settled) the {{gmslaprov|Non Defaulting Party}} may elect to treat as the {{gmslaprov|Default Market Value}}: <br>

::(i) in the case of {{gmslaprov|Receivable Securities}}, the net proceeds of such sale after deducting all {{gmslaprov|Transaction Costs}}; provided that, where the securities sold are not identical in amount to the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}, the {{gmslaprov|Non Defaulting Party}} may, acting in good faith, either (A) elect to treat such net proceeds of sale divided by the amount of securities sold and multiplied by the amount of the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} as the {{gmslaprov|Default Market Value}} or (B) elect to treat such net proceeds of sale of the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} actually sold as the {{gmslaprov|Default Market Value}} of that proportion of the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}, and, in the case of (B), the {{gmslaprov|Default Market Value}} of the balance of the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} shall be determined separately in accordance with the provisions of this paragraph {{gmslaprov|11.4}}; or <br>

::(ii) in the case of {{gmslaprov|Deliverable Securities}}, the aggregate cost of such purchase, including all {{gmslaprov|Transaction Costs}}; provided that, where the securities purchased are not identical in amount to the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}, the {{gmslaprov|Non Defaulting Party}} may, acting in good faith, either (A) elect to treat such aggregate cost divided by the amount of securities purchased and multiplied by the amount of the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}as the {{gmslaprov|Default Market Value}} or (B) elect to treat the aggregate cost of purchasing the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}actually purchased as the {{gmslaprov|Default Market Value}} of that proportion of the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}, and, in the case of (B), the {{gmslaprov|Default Market Value}} of the balance of the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}shall be determined separately in accordance with the provisions of this paragraph {{gmslaprov|11.4}}; <br>

:{{gmslaprov|11.4(b)}} the {{gmslaprov|Non Defaulting Party}} has received, in the case of {{gmslaprov|Deliverable Securities}}, offer quotations or, in the case of {{gmslaprov|Receivable Securities}}, bid quotations in respect of securities of the relevant description from two or more market makers or regular dealers in the {{gmslaprov|Appropriate Market}} in a commercially reasonable size (as determined by the {{gmslaprov|Non Defaulting Party}}) the {{gmslaprov|Non-Defaulting Party}} may elect to treat as the {{gmslaprov|Default Market Value}} of the relevant {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}: <br>

::(i) the price quoted (or where more than one price is so quoted, the arithmetic mean of the prices so quoted) by each of them for, in the case of {{gmslaprov|Deliverable Securities}}, the sale by the relevant market marker or dealer of such securities or, in the case of {{gmslaprov|Receivable Securities}}, the purchase by the relevant market maker or dealer of such securities, provided that such price or prices quoted may be adjusted in a commercially reasonable manner by the {{gmslaprov|Non Defaulting Party}} to reflect accrued but unpaid coupons not reflected in the price or prices quoted in respect of such {{gmslaprov|Securities}}; <br>

::(ii) after deducting, in the case of {{gmslaprov|Receivable Securities}} or adding in the case of {{gmslaprov|Deliverable Securities}} the {{gmslaprov|Transaction Costs}} which would be incurred or reasonably anticipated in connection with such transaction. <br>