Template:M summ Pledge GMSLA 11.7

From The Jolly Contrarian
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Trick for young players alert

This looks like the only place where LIBOR is mentioned — harmless accrual of small amounts on professional fees — but the far more important interest accrual clause is Clause 15 (Interest on Outstanding Payments) which awards interest on any missed payment under the agreement, and defers to the rate agreed here in Clause 11.7. Now why you would cross refer the main interest rate clause, Interest on Outstanding Payments, to some crappy little aside, buried deep in the enforcement clause, about interest on incurred professional fees, rather than referring the crappy little aside to the main Interest on Outstanding Payments clause we can only wonder about, if it were not to trip up people like yours truly. So be warned.

This bit is just about incurred interest on professional fees

Clause 11.7 is the Default Interest provision of the 2010 GMSLA. Note a potentially troublesome reference to LIBOR in there, seeing as LIBOR is being phased out, though it is only a fall back, and only for Default Interest on its legal fees (once a party has failed to meet its payment obligations) so, while there are more cataclysmic threats to the capital markets than this, that won’t stop financial services firms across the western world diverting key internal risk management resource towards remediating it, generating 18 months’ meaningful employment for an army of contractors of course.

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