Template:Nutshell GMSLA 5.4

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;

(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;

(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.