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Template:Nutshell Pledge GMSLA 11: Difference between revisions
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:{{pgmslaprov|11.4(a)}} '''Actual sale or purchase''': as {{pgmslaprov|Non-Defaulting Party}}, the {{pgmslaprov|Borrower}} has sold or the {{pgmslaprov|Lender}} has purchased, [[fungible]] {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} it may treat as the {{pgmslaprov|Default Market Value}} the net proceeds of any sale (after deducting {{pgmslaprov|Transaction Costs}}) or the total cost of any purchase (including {{pgmslaprov|Transaction Costs}}). Were the securities sold or purchased are not in identical in amount to the {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}}, {{pgmslaprov|Non-Defaulting Party}} may [[in good faith]] pro rate those values to determine the necessary {{pgmslaprov|Default Market Value}}. | :{{pgmslaprov|11.4(a)}} '''Actual sale or purchase''': as {{pgmslaprov|Non-Defaulting Party}}, the {{pgmslaprov|Borrower}} has sold or the {{pgmslaprov|Lender}} has purchased, [[fungible]] {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} it may treat as the {{pgmslaprov|Default Market Value}} the net proceeds of any sale (after deducting {{pgmslaprov|Transaction Costs}}) or the total cost of any purchase (including {{pgmslaprov|Transaction Costs}}). Were the securities sold or purchased are not in identical in amount to the {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}}, {{pgmslaprov|Non-Defaulting Party}} may [[in good faith]] pro rate those values to determine the necessary {{pgmslaprov|Default Market Value}}. | ||
:{{pgmslaprov|11.4(b)}} '''Market quotes''': the {{pgmslaprov|Non-Defaulting Party}} has received [[bid]]s (where it is {{pgmslaprov|Borrower}}) or [[offer]]s (where it is {{pgmslaprov|Lender}}) for [[fungible]] {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} from at least two regular participants in the {{pgmslaprov|Appropriate Market}} in what it determines to be a commercially reasonable size, it may treat as the {{pgmslaprov|Default Market Value}} the arithmetic mean of the quoted prices as reasonably adjusted to account for for accrued but unpaid interest and {{pgmslaprov|Transaction Costs}}. <br> | :{{pgmslaprov|11.4(b)}} '''Market quotes''': the {{pgmslaprov|Non-Defaulting Party}} has received [[bid]]s (where it is {{pgmslaprov|Borrower}}) or [[offer]]s (where it is {{pgmslaprov|Lender}}) for [[fungible]] {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} from at least two regular participants in the {{pgmslaprov|Appropriate Market}} in what it determines to be a commercially reasonable size, it may treat as the {{pgmslaprov|Default Market Value}} the arithmetic mean of the quoted prices as reasonably adjusted to account for for accrued but unpaid interest and {{pgmslaprov|Transaction Costs}}. <br> | ||
{{pgmslaprov|11.5}} '''Where there’s no [[commercially reasonable]] value''': If, having tried in [[good faith]], the {{pgmslaprov|Non-Defaulting Party}} has | {{pgmslaprov|11.5}} '''Where there’s no [[commercially reasonable]] value''': If, having tried in [[good faith]], the {{pgmslaprov|Non-Defaulting Party}} has not been able to sell nor purchase {{pgmslaprov|Securities}} under paragraph {{pgmslaprov|11.4(a)}} or obtain quotations under paragraph {{pgmslaprov|11.4(b)}}, or it considers the quotations it did obtain are not commercially reasonable, it may determine the {{pgmslaprov|Net Value}} of the {{pgmslaprov|Equivalent}} {{pgmslaprov|Securities}} and treat that as their {{pgmslaprov|Default Market Value}}. <br> | ||
{{pgmslaprov|11.6}} If the {{pgmslaprov|Non-Defaulting Party}} has not determined the {{pgmslaprov|Default Market Value}} under | {{pgmslaprov|11.6}} If the {{pgmslaprov|Non-Defaulting Party}} has not determined the {{pgmslaprov|Default Market Value}} under {{pgmslaprov|11.4}}, it will equal the {{pgmslaprov|Net Value}} of the securities in question at the {{pgmslaprov|Default Valuation Time}}. However, if the {{pgmslaprov|Non-Defaulting Party}} determines it is not practicable to calculate a [[commercially reasonable]] {{pgmslaprov|Net Value}} at that time, the {{pgmslaprov|Default Market Value}} will be the {{pgmslaprov|Net Value}} it determines as soon as reasonably practicable after the {{pgmslaprov|Default Valuation Time}}. <br> | ||
{{pgmslaprov|11.7}} '''{{pgmslaprov| | {{pgmslaprov|11.7}} '''{{pgmslaprov|Costs and expenses following an Event of Default}}''': The {{pgmslaprov|Defaulting Party}} must pay the {{pgmslaprov|Non-Defaulting Party}}’s reasonable professional expenses in connection with the {{pgmslaprov|Event of Default}} plus interest at the rate agreed by the {{gmslaprov|Parties}} or, failing that, the overnight [[LIBOR]] rate as at 11.00 a.m., London time. [[Interest]] will accrue and compound daily. <br> | ||
{{pgmslaprov|11.8}} '''{{pgmslaprov|Set-off}}''': The {{pgmslaprov|Non-Defaulting Party}} may [[set off]] any amount due under paragraph {{pgmslaprov|11.2(b)}} against any amount payable the other way under any other agreement between the Parties | {{pgmslaprov|11.8}} '''{{pgmslaprov|Set-off}}''': The {{pgmslaprov|Non-Defaulting Party}} may [[set off]] any amount due under paragraph {{pgmslaprov|11.2(b)}} against any amount payable the other way under any other agreement between the {{pgmslaprov|Parties}}. The {{pgmslaprov|Non Defaulting Party}} may estimate any [[unascertained obligation]] but must account for any difference once finally ascertained. This paragraph does not create a [[security interest]], or prejudice any other rights either party may have. <br> | ||