Template:Nutshell GMSLA 11.3: Difference between revisions

{{gmslaprov|11.3}} The '''{{gmslaprov|Default Market Value}}''' of a {{gmslaprov|Letter of Credit}} will be zero. For any {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or any other {{gmslaprov|Equivalent}} {{gmslaprov|Non-Cash Collateral}} it will be determined under paragraphs {{gmslaprov|11.4}} to {{gmslaprov|11.6}} below, where:  

:(a) the '''{{gmslaprov|Appropriate Market}}''' is the most appropriate market for any securities determined by the {{gmslaprov|Non Defaulting Party}};  

:(b) the '''{{gmslaprov|Default Valuation Time}}''' means the [[close of business]] in the {{gmslaprov|Appropriate Market}} on the fifth dealing day after  

::(i) the {{gmslaprov|Event of Default}} or,

::(ii) in the case of {{gmslaprov|Automatic Early Termination}}, the {{gmslaprov|Non Defaulting Party}} became aware of it;  

:(c) '''{{gmslaprov|Deliverable Securities}}''' means {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Non-Cash Collateral}} to be delivered by the {{gmslaprov|Defaulting Party}};  

:(d) '''{{gmslaprov|Net Value}}''' means at any time, in relation to any {{gmslaprov|Deliverable Securities}} or {{gmslaprov|Receivable Securities}}, the amount which the {{gmslaprov|Non Defaulting Party}} reasonably considers to be their fair market value, plus or minus all reasonably anticipated {{gmslaprov|Transaction Costs}};  

:(e) '''{{gmslaprov|Receivable Securities}}''' means {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} or {{gmslaprov|Equivalent}} {{gmslaprov|Non-Cash Collateral}} to be delivered to the {{gmslaprov|Defaulting Party}}; and  

:(f) '''{{gmslaprov|Transaction Costs}}''' means the reasonable costs and expenses reasonably anticipated in buying Deliverable Securities or selling Receivable Securities, assuming that the aggregate is the least that could reasonably be expected to be paid in order to carry out the transaction. <br>