Common use of Margin and Margin Maintenance Clause in Contracts

Margin and Margin Maintenance. Correspondent is responsible for the collection of initial margin and all amounts necessarily to meet subsequent maintenance calls in each Customer and Correspondent Account to ensure compliance with Regulation T, the rules of any self-regulatory organization or exchange and the house rules of NFS. Subject to prevailing market conditions, NFS will produce, maintain and provide to Correspondent sufficient information to allow Correspondent to determine which of its Accounts are undermargined for purposes of Correspondent’s compliance with Regulation T, any self-regulatory organization or exchange and NFS’ house rules. NFS will promptly notify Correspondent of all margin and maintenance calls relating to Accounts and Correspondent shall notify Accounts of such calls and shall be responsible for ensuring that margin requirements are met. NFS reserves the right to send notice of a margin requirement directly to an Account and will promptly provide a copy of the notice to Correspondent. If any Account fails to comply with any margin requirement, NFS will notify Correspondent and, if Correspondent does not promptly sell out (or buy in, as appropriate) such Account so as to bring the Account into compliance with applicable margin or maintenance requirements, NFS will do so on Correspondent’s behalf. In the event that required margin is not provided within the time specified by NFS or securities sold are not delivered as required, NFS may take such action as NFS deems appropriate, including but not limited to the sale or purchase of securities for, and at the risk of, the Account. Compliance with a request by Correspondent to withhold action shall not be deemed a waiver by NFS of any rights under this Agreement, including but not limited to the right to close out a contract or position if NFS in its reasonable judgment determines that changing conditions render such action advisable, with or without prior notification to the Customer or the Correspondent. Correspondent may request in good faith that NFS file for an extension of time to comply with Regulation T. Filing for such extension of time with the NYSE is within the sole discretion of NFS.

Margin and Margin Maintenance. Correspondent is responsible for the collection of initial margin and all amounts necessarily necessary to meet subsequent maintenance calls in each Customer and Correspondent Account to ensure insure compliance with Regulation T, the rules of any self-regulatory organization or exchange and the house rules of NFS. Subject to prevailing market conditions, NFS will produce, maintain and provide to Correspondent sufficient information to allow Correspondent to determine which of its Accounts are undermargined under margined for purposes of Correspondent’s compliance with Regulation T, any self-regulatory organization or exchange and NFS’ house rules. NFS will promptly notify Correspondent of all margin and maintenance calls relating to Accounts and Correspondent shall notify Accounts of such calls and shall be responsible for ensuring that margin requirements are met. NFS reserves the right to send notice of a margin requirement directly to an Account and will promptly provide a copy of the notice to Correspondent. If any Account fails to comply with any margin requirement, NFS Correspondent will notify Correspondent and, if Correspondent does not promptly sell out (or buy in, as appropriate) such Account so as to bring the Account into compliance with applicable margin or maintenance requirements, NFS will do so on Correspondent’s behalf. In the event that required margin is not provided within the time reasonably specified by NFS or securities sold are not delivered as required, NFS may take such action as NFS deems appropriate, including but not limited to the sale or purchase of securities for, and at the risk of, the Account. Compliance with a request by Correspondent to withhold action shall not be deemed a waiver by NFS of any rights under this Agreement, including but not limited to the right to close out a contract or position if NFS in its reasonable judgment determines that changing conditions render such action advisable, with or without prior notification to the Customer or the Correspondent. Correspondent may request in good faith that NFS file for an extension of time to comply with Regulation T. Filing for such extension of time with the NYSE is within the sole discretion of NFS.