Template:Nutshell GMSLA 5.4: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
:{{gmslaprov|5.4}} Unless {{gmslaprov|Single Loan margining}} under {{gmslaprov|5.5}} applies: | :{{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|Collateral}} delivered to {{gmslaprov|Lender}} ('''{{gmslaprov|Posted Collateral}}''') for all outstanding {{gmslaprov|Loans}} must equal the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Loaned Securities}} plus the {{gmslaprov|Margin}}. | ::(a) '''{{gmslaprov|Required Collateral Value}}''': The aggregate {{gmslaprov|Market Value}} of {{gmslaprov|Collateral}} delivered to {{gmslaprov|Lender}} ('''{{gmslaprov|Posted Collateral}}''') for all outstanding {{gmslaprov|Loans}} must equal the aggregate {{gmslaprov|Market Value}} of the {{gmslaprov|Loaned Securities}} plus the {{gmslaprov|Margin}} ('''{{gmslaprov|Required Collateral Value}}'''). | ||
::(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; | ::(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> | ::(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}}. <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}}. <br> | ||
Revision as of 15:58, 8 July 2020
- 5.4 Unless Single Loan margining under 5.5 applies:
- (a) Required Collateral Value: The aggregate Market Value of Collateral delivered to Lender (Posted Collateral) for all outstanding Loans must equal the aggregate Market Value of the Loaned Securities plus the Margin (Required Collateral Value).
- (b) Excess Collateral: if the aggregate Market Value of the Posted Collateral (plus unpaid income etc) exceeds the aggregate of the Required Collateral Value the Lender must deliver to Borrower enough Equivalent Collateral to eliminate the excess;
- (c) Collateral Deficiency: if the aggregate Market Value of the Posted Collateral (plus unpaid income etc) falls below the aggregate Required Collateral Value the Borrower must provide further Collateral to Lender to eliminate the deficiency.
- (d) Shorts and Longs: where a Party acts as both Lender and Borrower, paragraphs 5.4(b) and 5.4(c) apply separately to Loans where it is a Lender and Loans where it is a Borrower.