Spot Rate

The “Spot Rate” is the rate used for all conversions to be performed under the GMRA (including for margining purposes and for close-out calculations).  The 1995 and 2000 GMRAs both use the spot rate quoted by Barclays Bank PLC as a default.  The 2000 GMRA documents two alternatives:

1. For the purposes of Paragraph 10 (Events of Default and close-out calculations), the non-Defaulting Party determines the “Spot Rate” by reference to quoted prices; and
2. For all other purposes, the “Spot Rate” is the latest available quote from a pricing source agreed to by the parties.

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