Eligible Margin Sample Clauses
The Eligible Margin clause defines the types of collateral that parties may use to satisfy margin requirements under a financial agreement. It typically specifies acceptable forms of collateral, such as cash, government securities, or other highly liquid assets, and may outline criteria like credit ratings or jurisdictional restrictions. By clearly identifying what assets qualify as margin, this clause ensures both parties understand and agree on the collateral that can be posted, thereby reducing disputes and managing credit risk effectively.
Eligible Margin. Cash Margin: eligible currencies (other than the Base Currency): [ ] [ ]% [Party A] [Party B] Interest payable on Cash Margin: ... Margin Securities: Eligible Securities Valuation Percentage Transferring party
(i) Negotiable debt obligations issued by the Government of [ ] having an original maturity at issuance of not more than [one year] [ ] % [Party A] [Party B]
(ii) Negotiable debt obligations issued by the Government of [ ] having an original maturity at issuance of more than [one year] but not more than 10 years [ ] % [Party A] [Party B]
(iii) Other: [Party A] [Party B]