Establishment of Deposit Account. To further assure Introducing Firm’s performance of its obligations under this Agreement, including but not limited to its indemnification obligations under Section 17, Introducing Firm shall, on or before the execution of this Agreement, establish an account at Clearing Agent to be designated as the Introducing Firm’s Deposit Account (the “Deposit Account”). The Deposit Account shall not represent an ownership interest by Introducing Firm in Clearing Agent. The Deposit Account shall at all times contain cash, securities, or a combination of both, having a market value of at least seven hundred fifty thousand dollars ($750,000) (the “Required Amount”). The securities placed in the Deposit Account shall consist only of direct obligations issued by or guaranteed as to principal and interest by the United States Government. In the event of a substantial change in the nature and extent of Introducing Firm’s business operations, Clearing Agent may require that an additional amount be deposited promptly in the Deposit Account. If such a deposit is not made in the amount specified, whether or not Introducing Firm agrees that the amount is justified under this Section, Clearing Agent may terminate this Agreement forthwith.
Appears in 3 contracts
Samples: Disclosed Clearing Agreement (Cowen Group, Inc.), Disclosed Clearing Agreement (Cowen Group, Inc.), Cowen Group, Inc.
