Template:Nutshell GMSLA Interpretation (Agency Addendum)
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Addendum 2. Interpretation (Agency Addendum)
2.1 In this addendum:
- (a) Collateral Transfer is defined in paragraph Addendum 5.1 below;
- (b) Net Loan Exposure:
- (i) If the aggregate Market Value of Posted Collateral between the Borrower and any one Principal exceeds the total Required Collateral Value for all Agency Loans between them, Borrower has a Net Loan Exposure to that Principal equal to that excess.
- (ii)If it is less than the Required Collateral Value, the Principal has a Net Loan Exposure to Borrower equal to the shortfall.
- (i) If the aggregate Market Value of Posted Collateral between the Borrower and any one Principal exceeds the total Required Collateral Value for all Agency Loans between them, Borrower has a Net Loan Exposure to that Principal equal to that excess.
- (c) Pooled Principal is defined in paragraph Addendum 6(a) below; and
- (d) Pooled Loan is defined in paragraph Addendum 6(a) below.