Template:Nutshell Pledge GMSLA 11: Difference between revisions

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 {{pgmslaprov|11}} '''{{pgmslaprov|Consequences of an Event of Default}}''' <br>
 {{pgmslaprov|11.1}} If an {{pgmslaprov|Event of Default}} happens to either Party: <br>
-{{pgmslaprov|11.2}} '''{{pgmslaprov|Acceleration}}''': {{pgmslaprov|Borrower}}’s obligations will be accelerated as at the time of the {{pgmslaprov|Event of Default}} (the '''{{pgmslaprov|Termination Date}}''') as follows:<br>
+{{Nutshell Pledge GMSLA 11.2}}
-:{{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.
 {{Nutshell Pledge GMSLA 11.3}}
-{{pgmslaprov|11.4}} '''Transactions and quotes''': If, between the {{pgmslaprov|Termination Date}} and the {{pgmslaprov|Default Valuation Time}}:
+{{Nutshell Pledge GMSLA 11.4}}
-:{{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|11.5}} '''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|11.4}}, 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>
 {{Nutshell Pledge GMSLA 11.7}}
 {{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>