Failure by either Party to deliver or instruct delivery - Pledge GMSLA Provision

2018 Global Master Securities Lending Agreement (Pledge Version)
A Jolly Contrarian owner’s manual™

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Clause 9.2 in a Nutshell™

Use at your own risk, campers!

9.3 Failure by either Party to deliver or instruct delivery Where Borrower fails to deliver Equivalent Securities or Lender fails to instruct Custodian to deliver Posted Collateral when due (such party the Transferor) and the other Party (the Transferee) incurs interest, overdraft expenses or Buy in costs the Transferor must, within one Business Day of a demand, pay the Transferee and hold it harmless against those costs that arise directly from that failure other than (i) costs arising from the Transferee’s negligence or wilful default and (ii) any consequential losses). view template

Full text of Clause 9.2

9.2 Failure by either Party to deliver or instruct delivery: Where Borrower fails to deliver Equivalent Securities, or Lender fails to instruct Custodian to deliver Posted Collateral, in either case by the time required under this Agreement or within such other period as may be agreed between such Party (the Transferor) and the other Party (the Transferee), and the Transferee: (a) incurs interest, overdraft or similar costs and expenses; or (b) incurs costs and expenses as a direct result of a Buy-in exercised against it by a third party, then the Transferor agrees to pay within one Business Day of a demand from the Transferee and hold harmless the Transferee with respect to all reasonable costs and expenses listed in sub-paragraphs (a) and (b) above properly incurred which arise directly from such failure other than (i) such costs and expenses which arise from the negligence or wilful default of the Transferee and (ii) any indirect or consequential losses. view template

Related agreements and comparisons

Related agreements: Click here for the same clause in the 2010 GMSLA Comparison: Click to compare the 2010 GMSLA and 2018 Pledge GMSLA versions of this clause.

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