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}} '''Acceleration''': 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) Using those values, [the {{gmslaprov|Non-Defaulting Party}} will determine ''and notify'']<ref>Well, we ''assume'' it will be the [[Non-Defaulting Party - GMSLA Provision|NDP]]: the {{gmsla}} rather brilliantly puts it into an unattributed [[passive]], as if God is going to to it, or it will magically happen by itself. Go,  {{islacds}}.</ref>what each Party owes as at the {{gmslaprov|Termination Date}}, converting into the {{gmslaprov|Base Currency}} at the {{gmslaprov|Spot Rate}} where necessary, and will set those sums off against each other. The {{gmslaprov|Party}} owing the greater amount must pay the difference on the {{gmslaprov|Business Day}} after notification.  
::(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. <br>
:(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. <br>

Latest revision as of 10:21, 24 June 2020

11.2 Acceleration: 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) Using those values, [the Non-Defaulting Party will determine and notify][1]what each Party owes as at the Termination Date, converting into the Base Currency at the Spot Rate where necessary, and will set those sums off against each other. The Party owing the greater amount must pay the difference on the Business Day after notification.
(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.
  1. ↑ Well, we assume it will be the NDP: the 2010 GMSLA rather brilliantly puts it into an unattributed passive, as if God is going to to it, or it will magically happen by itself. Go, ISLA’s crack drafting squad™.
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