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Template:Nutshell GMSLA 5.4: Difference between revisions
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:{{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> | ||