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Payment Netting

Payment netting is a method through which counterparties to a Repurchase Transaction executed under a Global Master Repurchase Agreement can mitigate counterparty credit risk.

The concept of payment netting is found within Paragraph 6(h) of the 2011 GMRA.  It states that any amounts payable in the same currency and on the same date under ANY Transaction shall be combined to arrive at a single net sum and that net sum shall be the only payment obligation under the GMRA with respect to the amounts combined.

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