Template:Nutshell GMSLA 5.4: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "{{gmslaprov|5.4}} Unless "single {{gmslaprov|Loan}} margining" under {{gmslaprov|5.5}} applies: :(a) '''{{gmslaprov|Required Collateral Value}}''': The aggregate {{gmslaprov|...") |
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::(i) all unpaid amounts due by the {{gmslaprov|Lender}}; and <br> | ::(i) all unpaid amounts due by the {{gmslaprov|Lender}}; and <br> | ||
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Non-Cash Collateral}} <br> | ::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Non-Cash Collateral}} <br> | ||
:exceeds the aggregate of the {{gmslaprov|Required Collateral Value}} plus: | ::exceeds the aggregate of the {{gmslaprov|Required Collateral Value}} plus: | ||
::(i) all unpaid amounts due by the {{gmslaprov|Borrower}}; and | ::(i) all unpaid amounts due by the {{gmslaprov|Borrower}}; and | ||
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on the {{gmslaprov|Equivalent Securities}},<br> | ::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on the {{gmslaprov|Equivalent Securities}},<br> | ||
:{{gmslaprov|Lender}} must repay to {{gmslaprov|Borrower}} such {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} as will eliminate the excess; | ::{{gmslaprov|Lender}} must repay to {{gmslaprov|Borrower}} such {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} as will eliminate the excess; | ||
:(c) '''{{gmslaprov|Collateral}} Deficiency''': if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} plus: <br> | :(c) '''{{gmslaprov|Collateral}} Deficiency''': if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} plus: <br> | ||
::(i) all unpaid amounts due by the {{gmslaprov|Lender}}; and <br> | ::(i) all unpaid amounts due by the {{gmslaprov|Lender}}; and <br> | ||
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Non-Cash Collateral}} <br> | ::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Non-Cash Collateral}} <br> | ||
:falls below the aggregate {{gmslaprov|Required Collateral Value}} plus: | ::falls below the aggregate {{gmslaprov|Required Collateral Value}} plus: | ||
::(i) all unpaid amounts due by the {{gmslaprov|Borrower}}; and | ::(i) all unpaid amounts due by the {{gmslaprov|Borrower}}; and | ||
::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Equivalent Securities}},<br> | ::(ii) the {{gmslaprov|Market Value}} of {{gmslaprov|Income}} due on any {{gmslaprov|Equivalent Securities}},<br> | ||
:{{gmslaprov|Borrower}} must provide such further {{gmslaprov|Collateral}} to {{gmslaprov|Lender}} as will eliminate the deficiency;<br> | ::{{gmslaprov|Borrower}} must provide such further {{gmslaprov|Collateral}} to {{gmslaprov|Lender}} as will eliminate the deficiency;<br> | ||
:(d) '''Shorts and Longs''': where a {{gmslaprov|Party}} acts as both {{gmslaprov|Lender}} and {{gmslaprov|Borrower}} under this {{gmslaprov|Agreement}}, the provisions of paragraphs {{gmslaprov|5.4}}(b) and {{gmslaprov|5.4}}(c) shall apply separately (and without duplication) in respect of {{gmslaprov|Loans}} entered into by that {{gmslaprov|Party}} as {{gmslaprov|Lender}} and {{gmslaprov|Loans}} entered into by that {{gmslaprov|Party}} as {{gmslaprov|Borrower}}. | :(d) '''Shorts and Longs''': where a {{gmslaprov|Party}} acts as both {{gmslaprov|Lender}} and {{gmslaprov|Borrower}} under this {{gmslaprov|Agreement}}, the provisions of paragraphs {{gmslaprov|5.4}}(b) and {{gmslaprov|5.4}}(c) shall apply separately (and without duplication) in respect of {{gmslaprov|Loans}} entered into by that {{gmslaprov|Party}} as {{gmslaprov|Lender}} and {{gmslaprov|Loans}} entered into by that {{gmslaprov|Party}} as {{gmslaprov|Borrower}}. | ||
Revision as of 10:23, 5 September 2016
5.4 Unless "single Loan margining" under 5.5 applies:
- (a) Required Collateral Value: The aggregate Market Value of Posted Collateral in respect of all outstanding Loans must equal the aggregate Market Value of the Loaned Securities plus applicable Margin.
- (b) Excess Collateral: if the aggregate Market Value of the Posted Collateral plus:
- (i) all unpaid amounts due by the Lender; and
- (ii) the Market Value of Income due on any Non-Cash Collateral
- exceeds the aggregate of the Required Collateral Value plus:
- (i) all unpaid amounts due by the Borrower; and
- (ii) the Market Value of Income due on the Equivalent Securities,
- Lender must repay to Borrower such Equivalent Collateral as will eliminate the excess;
- (i) all unpaid amounts due by the Lender; and
- (c) Collateral Deficiency: if the aggregate Market Value of the Posted Collateral plus:
- (i) all unpaid amounts due by the Lender; and
- (ii) the Market Value of Income due on any Non-Cash Collateral
- falls below the aggregate Required Collateral Value plus:
- (i) all unpaid amounts due by the Borrower; and
- (ii) the Market Value of Income due on any Equivalent Securities,
- Borrower must provide such further Collateral to Lender as will eliminate the deficiency;
- (i) all unpaid amounts due by the Lender; and
- (d) Shorts and Longs: where a Party acts as both Lender and Borrower under this Agreement, the provisions of paragraphs 5.4(b) and 5.4(c) shall apply separately (and without duplication) in respect of Loans entered into by that Party as Lender and Loans entered into by that Party as Borrower.