Template:Nutshell GMSLA 5.4: Difference between revisions

{{gmslaprov|5.4}} Unless {{gmslaprov|Single Loan margining}} under {{gmslaprov|5.5}} applies:  

:(a) '''{{gmslaprov|Required Collateral Value}}''': The aggregate {{gmslaprov|Market Value}} of {{gmslaprov|Posted Collateral}} for all outstanding {{gmslaprov|Loans}} must equal the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Loaned Securities}} plus the {{gmslaprov|Margin}}.

:(b) '''Excess {{gmslaprov|Collateral}}''': if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} (plus unpaid income etc) exceeds the aggregate of the {{gmslaprov|Required Collateral Value}} the {{gmslaprov|Lender}} must deliver to {{gmslaprov|Borrower}} enough {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} to eliminate the excess;

:(c) '''{{gmslaprov|Collateral}} Deficiency''': if the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Posted Collateral}} (plus unpaid income etc) falls below the aggregate {{gmslaprov|Required Collateral Value}} the {{gmslaprov|Borrower}} must provide further {{gmslaprov|Collateral}} to {{gmslaprov|Lender}} to eliminate the deficiency.<br>

:(d) '''Shorts and Longs''': where a {{gmslaprov|Party}} acts as both {{gmslaprov|Lender}} and {{gmslaprov|Borrower}}, paragraphs {{gmslaprov|5.4}}(b) and {{gmslaprov|5.4}}(c) apply separately to {{gmslaprov|Loans}} where it is a {{gmslaprov|Lender}} and {{gmslaprov|Loans}} where it is a {{gmslaprov|Borrower}}.