Margin and Security Clause Samples
The 'Margin and Security' clause establishes the requirement for one or both parties to provide collateral or financial guarantees to secure their obligations under an agreement. This typically involves the deposit of cash, securities, or other assets, which may be adjusted based on the value of outstanding obligations or market fluctuations. By requiring margin or security, the clause helps mitigate credit risk and ensures that parties have a financial incentive to fulfill their contractual commitments, thereby protecting against potential losses from default.
Margin and Security. (a) Party B shall at all times maintain with Dean Witter Reynolds Inc. (the "Custodian") for and on behalf of Pa▇▇▇ ▇ ▇▇▇▇ ▇▇▇ ▇▇▇▇▇ities acceptable to Party A (together, the "Margin") in order to secure the obligations of Party B under all open FX Transactions and Options entered into under the Agreement. The amount of Margin which Party B shall maintain with Party A shall be determined by Party A in its reasonable judgment (which determination shall be conclusive in the absence of manifest error), on a risk adjusted basis, taking into account historical volatility, imputed volatility and/or such other factors as Party A reasonably deems relevant to this determination (the "Aggregate Margin Requirement"). On or prior to the date of the Agreement, Party B shall have established a special pledge account with the Custodian (the "Account") for the purpose of holding custody of the Margin for and on behalf of Party A in accordance with the provisions of the Custodian Account Addendum, dated the date hereof, and the Agreement. Party B's failure to deposit Margin or to establish the Account as required herein shall be an Event of Default for all purposes under the Agreement (it being understood that there shall be no grace period with respect to obligations of Party B pursuant to this Part XX).
(b) Whenever such Aggregate Margin Requirement shall exceed the market value of Margin on deposit with the Custodian in the Account as determined by Party A at such time in its reasonable judgment and which determination shall be conclusive in the absence of manifest error (the "Margin Balance", and the difference between such Aggregate Margin Requirement and the Margin Balance being the "Shortfall"), then Party B shall deposit immediately upon Party A's request, additional Margin in an amount at least equal to such Shortfall.
(c) In furtherance of the foregoing, as security for the prompt and complete payment when due and the performance by Party B of all of its obligations to Party A under the Agreement, Party B hereby grants to Party A a continuing first priority security interest in and to all of Party B's right, title and interest in and to the Margin, the Account, all financial assets, investment property and other property and assets which are deposited from time to time in, or credited from time to time to, the Account, all security entitlements in respect thereof, all income and profits thereon, all interest, dividends and other payments and distributions with re...
Margin and Security. Interest 7.1. Except for transactions that have been fully paid for by the Client, the Client agree to deposit and maintain collateral (cash in an eligible currency or such other property as the Company expressly agree to accept) including, without limitation, initial, original, variation and maintenance margin together with any additional collateral in amounts and in such amounts, at such times and in such form as required by the Company from time to time in its sole discretion. If the Company determines that additional margin or collateral is required, the Client agree to deposit such additional margin or collateral upon demand (which, for the avoidance of doubt, may be required on an intraday basis).
Margin and Security. Interest 7.1 Except for transactions that have been fully paid for by the Client, the Client agree to deposit and maintain collateral (cash in an eligible currency or such other property as the Company expressly agree to accept) including, without limitation, initial, original, variation and maintenance margin together with any additional collateral in amounts and in such amounts, at such times and in such form as 7. Маржа и Обеспечительный интерес 7.1 За исключением операций, полностью оплаченных Клиентом, Клиент согласен внести обеспечение и поддерживать его уровень (в денежных средствах в подходящей валюте или такой иной собственности, которую Компания однозначно согласится принять), включая, без ограничения, первоначальную маржу (гарантийный депозит), вариационную маржу, и минимальную маржу, вместе с любым required by the Company from time to time in its sole discretion. If the Company determines that additional margin or collateral is required, the Client agree to deposit such additional margin or collateral upon demand (which, for the avoidance of doubt, may be required on an intraday basis). дополнительным обеспечением на такие суммы и в таких количествах, в такое время и в такой форме, как Компания будет требовать по своему усмотрению на тот или иной момент времени. Если Компания определит, что требуется дополнительная маржа или обеспечение, Клиент согласен внести по требованию такую дополнительную маржу или обеспечение (которое, во избежание сомнений, может быть затребовано на внутридневной основе).
Margin and Security. Party B shall at all times maintain with ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ Inc. (the "Custodian") for and on behalf of Party A cash and securities acceptable to Party A (together, the "Margin") in order to secure the obligations of Party B under all open FX Transactions and Options entered into under the Agreement. The amount of Margin which Party B shall maintain with Party A shall be determined by Party A in its reasonable judgment (which determination shall be conclusive in the absence of manifest error), on a risk adjusted basis, taking into account historical volatility, imputed volatility and/or such other factors as Party A reasonably deems relevant to this determination (the "Aggregate Margin Requirement"). On or prior to the date of the Agreement, Party B shall have established a special pledge account with the Custodian (the "Account") for the purpose of holding custody of the Margin for and on behalf of Party A in accordance with the provisions of the Custodian Account Addendum, dated the date hereof, and the Agreement. Party B's failure to deposit Margin or to establish the Account as required herein shall be an Event of Default for all purposes under the Agreement (it being understood that there shall be no grace period with respect to obligations of Party B pursuant to this Part XX).
Margin and Security