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Template:M gen GMSLA 10: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "{{gmslaprov|10.1(a)}}: <br> {{gmslaprov|10.1(b)}}: <br> {{gmslaprov|10.1(c)}}: <br> {{gmslaprov|10.1(d)}}: <br> {{gmslaprov|10.1(e)}}: Breach of Warranty: Why exclude the 14(e...") |
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{{gmslaprov|10.1(a)}}: <br> | {{gmslaprov|10.1(a)}}: '''Failure to pay or deliver''': There are great tales of worthy fellows around the market trying to tweak this provision because, by apparent oversight, it doesn't capture a failure to ''return'' {{gmslaprov|Equivalent}} (non cash) {{gmslaprov|Collateral}}. | ||
But this is not an accident, for the same reason a failure to redeliver {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} isn’t an {{gmslaprov|Event of Default}}. Indeed, it is a plainly deliberate omission. The drafters were careful to capture the payment or repayment of cash, and deliveries and ''further'' deliveries of {{gmslaprov|Collateral}}, but not the return of ''{{gmslaprov|Equivalent}}'' {{gmslaprov|Collateral}}. | |||
A counterparty may have on-lent, or on-collateralised, with non-cash {{gmslaprov|Collateral}} it has been posted. It may have exactly the same difficulties in getting hold of it to redeliver as a borrower may in getting hold of {{gmslaprov|Equivalent}} {{gmslaprov|Securities}}. So the remedy is to withhold the return of securities, buy in and {{isdaprov|mini close-out}} under {{gmslaprov|9.2}} which gives the aggrieved party equivalent rights, but not the right to close out the whole agreement (until there’s a failure of the mini-close out settlement amount itself).<br> | |||
{{gmslaprov|10.1(b)}}: <br> | {{gmslaprov|10.1(b)}}: <br> | ||
{{gmslaprov|10.1(c)}}: <br> | {{gmslaprov|10.1(c)}}: <br> | ||
{{gmslaprov|10.1(d)}}: <br> | {{gmslaprov|10.1(d)}}: <br> | ||
{{gmslaprov|10.1(e)}}: Breach of | {{gmslaprov|10.1(e)}}: '''Breach of warranty''': Why exclude the 14(e) warranty about not having the primary purpose of voting on the Securities? Search me. <br> | ||
{{gmslaprov|10.1(f)}}: <br> | {{gmslaprov|10.1(f)}}: <br> | ||
{{gmslaprov|10.1(g)}}: <br> | {{gmslaprov|10.1(g)}}: <br> | ||
{{gmslaprov|10.1(h)}}: <br> | {{gmslaprov|10.1(h)}}: <br> | ||
{{gmslaprov|10.1(i)}}: <br> | {{gmslaprov|10.1(i)}}: <br> | ||