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Template:M summ Pledge GMSLA 11: Difference between revisions
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If the ''{{pgmslaprov|Borrower}}'' has defaulted, ''de l’autre main'', there is the matter of getting {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} back which (a) by our theory, the {{gmslaprov|Borrower}} hasn’t got, and would therefore have to go out to the market and get, and (b) the {{pgmslaprov|Borrower}} couldn’t, without the permission of its insolvency administrator, give back to you even if it did have one. Therefore the netting and close out provisions are quite handy. | If the ''{{pgmslaprov|Borrower}}'' has defaulted, ''de l’autre main'', there is the matter of getting {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} back which (a) by our theory, the {{gmslaprov|Borrower}} hasn’t got, and would therefore have to go out to the market and get, and (b) the {{pgmslaprov|Borrower}} couldn’t, without the permission of its insolvency administrator, give back to you even if it did have one. Therefore the netting and close out provisions are quite handy. | ||
===How the closeout works | ===How the closeout works=== | ||
Anyway, the process on any {{gmslaprov|Event of Default}} — but let’s presume for the sake of simplicity it is one committed by the {{pgmslaprov|Borrower}} — is this: | Anyway, the process on any {{gmslaprov|Event of Default}} — but let’s presume for the sake of simplicity it is one committed by the {{pgmslaprov|Borrower}} — is this: | ||
*All {{gmslaprov|Loan}}s are all accelerated, and the {{gmslaprov|Borrower}} is liable to return {{eqderivprov|Equivalent}} {{pgmslaprov|Securities}} as at the time of default. It won’t be able to of course, for the reasons given above. | *All {{gmslaprov|Loan}}s are all accelerated, and the {{gmslaprov|Borrower}} is liable to return {{eqderivprov|Equivalent}} {{pgmslaprov|Securities}} as at the time of default. It won’t be able to of course, for the reasons given above. | ||