Margin Financing Clause Samples
The Margin Financing clause defines the terms under which a party can borrow funds from a broker or lender to purchase securities, using those securities as collateral. Typically, this clause outlines the maximum loan-to-value ratio, interest rates, margin maintenance requirements, and the lender's rights in the event of a margin call or default. Its core function is to facilitate leveraged investment while clearly allocating the risks and responsibilities associated with borrowing on margin, thereby protecting both the lender and the borrower.
Margin Financing. This Agreement relates to Pershing providing margin financing to Client and sets forth terms and conditions under which Client may borrow funds from Pershing which shall be collateralized by assets held in a Special Custody Account held at Custodian pursuant to the Special Custody and Pledge Agreement. Capitalized terms used herein, and not otherwise defined herein, shall have the meanings assigned to such terms in the Special Custody and Pledge Agreement.
Margin Financing. Neither the Grantor nor any of its related or affiliated parties has entered, directly or indirectly, into margin transactions or any other financing transactions in connection with the Option Securities.
Margin Financing. This Appendix governs the Company's provision of services in relation to SMF Facilities (as defined below). It supplements, and should be read together with, the Terms and any other terms and conditions governing the services provided by the Company, as they may be amended from time to time. It forms an integral part of the Agreement.
Margin Financing. If Client intends to borrow funds in connection with Client’s Account, Client must open a margin account with Pershing. By applying for a margin account or placing an order on margin, Client acknowledges receipt of ▇▇▇▇▇▇▇▇’▇ Margin Disclosure Statement.
1. Risk Factors. Client agrees to carefully consider Client’s own financial condition, tolerance for risk and investment objectives, as well as market conditions, before Client decides to use margin credit or short selling strategies. Client acknowledges that Pershing has made available to Client certain information relating to margin trading and that before submitting Client’s application for a margin account, Client represents and warrants to Pershing that Client has had an opportunity to discuss with Pershing the risks associated with the use of margin and that the use of margin is consistent with Client’s investment objectives as provided to Pershing. “Margin” shall mean all funds, securities, or other property constituting Collateral required to be provided by Applicable Law or Pershing in connection with any Obligation, Account or Contract. Client remains solely liable for any deficiencies arising from the use of margin in its Account.
Margin Financing. The Issuer’s margin financing business is complementary to its brokerage services as it offers clients financing to purchase securities on a margin basis. For the years ended 31 December 2018 and 2019 and the six months ended 30 June 2019 and 2020, the Issuer’s interest income from margin financing was HK$81.7 million, HK$91.0 million, HK$56.9 million and HK$10.5 million, respectively. Benefiting from the strong customer network of the Guarantor, the Issuer is able to reach a large number of quality margin business customers. With an aim to further improve the Issuer’s capital utilisation rate and return on the premise of strict monitoring of credit risk and stock concentration risk, the margin financing business is mainly targeted for high-net-worth customers with large principal amount available for investment.