Template:Nutshell Pledge GMSLA 11: Difference between revisions

:{{pgmslaprov|11.2(a)}} The {{pgmslaprov|Non-Defaulting Party}} will determine the {{pgmslaprov|Default Market Value}} of the {{pgmslaprov|Borrower}}’s delivery and payment obligations under paragraph {{pgmslaprov|11.4}} as at the {{pgmslaprov|Termination Date}}.

:{{pgmslaprov|11.2(b)}} Using those values, [the {{pgmslaprov|Non-Defaulting Party}} will determine ''and notify'']<ref>Well, we ''assume'' it will be the [[Non-Defaulting Party - Pledge GMSLA Provision|NDP]]: the {{pgmsla}} rather brilliantly puts it into an unattributed [[passive]], as if God is going to to it, or it will magically happen by itself. Go,  {{islacds}}.</ref>what each Party owes as at the {{pgmslaprov|Termination Date}}, converting amounts into the {{pgmslaprov|Base Currency}} at the {{pgmslaprov|Spot Rate}} where necessary, and will set those sums off against each other. The Party owing the greater amount must pay the difference on the {{pgmslaprov|Business Day}} after notification.

{{pgmslaprov|11.4}} '''Transactions and quotes''': If, between the {{pgmslaprov|Termination Date}} and the {{pgmslaprov|Default Valuation Time}}:

:{{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}}.