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Template:M gen GMSLA 10: Difference between revisions
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==={{gmslaprov|10.1(a)}}: Failure to pay or deliver=== | ==={{gmslaprov|10.1(a)}}: Failure to pay or deliver=== | ||
{{failure to pay under GMSLA}} | {{failure to pay under GMSLA}} | ||
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}}. | [[Events of Default - GMSLA Provision|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}}. | 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}}. | ||