Template:Nutshell GMSLA 11.2: Difference between revisions
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{{gmslaprov|11.2}} The {{gmslaprov|Parties}}’ obligations will be accelerated as at the {{gmslaprov|Event of Default}} (the {{gmslaprov|Termination Date}}) as follows: | {{gmslaprov|11.2}} The {{gmslaprov|Parties}}’ obligations will be accelerated as at the {{gmslaprov|Event of Default}} (the {{gmslaprov|Termination Date}}) as follows: | ||
:(a) The {{gmslaprov|Non-Defaulting Party}} will determine the {{gmslaprov|Default Market Value}} of all amounts (and securities) due by each Party under paragraph {{gmslaprov|11.4}} as at the {{gmslaprov|Termination Date}}. | :(a) The {{gmslaprov|Non-Defaulting Party}} will determine the {{gmslaprov|Default Market Value}} of all amounts (and securities) due by each Party under paragraph {{gmslaprov|11.4}} as at the {{gmslaprov|Termination Date}}. | ||
(b) The {{gmslaprov|Non-Defaulting Party}} will convert all sums into the Base Currency at the prevailing {{gmslaprov|Spot Rate}} and then set off the resulting sums against each other and the out-of-the-money {{gmslaprov|Party}} will pay the balance to the in-the-money {{gmslaprov|Party}} on the following {{gmslaprov|Business Day}}. | :(b) The {{gmslaprov|Non-Defaulting Party}} will convert all sums into the Base Currency at the prevailing {{gmslaprov|Spot Rate}} and then set off the resulting sums against each other and the out-of-the-money {{gmslaprov|Party}} will pay the balance to the in-the-money {{gmslaprov|Party}} on the following {{gmslaprov|Business Day}}. | ||
(c) and (d) If that balance is payable by a {{gmslaprov|Party}} who had delivered a {{gmslaprov|Letter of Credit}} to the other {{gmslaprov|Party}} the other {{gmslaprov|Party}} must draw on the {{gmslaprov|Letter of Credit}} to settle the amount due and then deliver it for cancellation. | :(c) and (d) ''[(d) being the vice-versa]'' If that balance is payable by a {{gmslaprov|Party}} who had delivered a {{gmslaprov|Letter of Credit}} to the other {{gmslaprov|Party}} the other {{gmslaprov|Party}} must draw on the {{gmslaprov|Letter of Credit}} to settle the amount due and then deliver it for cancellation. | ||
Revision as of 10:18, 14 October 2016
11.2 The Parties’ obligations will be accelerated as at the Event of Default (the Termination Date) as follows:
- (a) The Non-Defaulting Party will determine the Default Market Value of all amounts (and securities) due by each Party under paragraph 11.4 as at the Termination Date.
- (b) The Non-Defaulting Party will convert all sums into the Base Currency at the prevailing Spot Rate and then set off the resulting sums against each other and the out-of-the-money Party will pay the balance to the in-the-money Party on the following Business Day.
- (c) and (d) [(d) being the vice-versa] If that balance is payable by a Party who had delivered a Letter of Credit to the other Party the other Party must draw on the Letter of Credit to settle the amount due and then deliver it for cancellation.