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Following application of the proceeds of each Advance, not more than 25 percent of the value of the assets (either of the Company only or of the Company and its Subsidiaries on a Consolidated basis) subject to the provisions of Section 5.02(a) or subject to any restriction on sale, pledge, or other disposition contained in any agreement or instrument between the Company and any Lender or any Affiliate of any Lender relating to Debt and within the scope of Section 6.01(d) will be margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System).", "hash": "e340c85274f3a136e442e948846c90c0", "id": 8}, {"snippet_links": [{"key": "loan-closing-date", "type": "definition", "offset": [14, 31]}, {"key": "the-borrower", "type": "clause", "offset": [33, 45]}, {"key": "class-of-securities", "type": "definition", "offset": [60, 79]}, {"key": "with-respect-to", "type": "clause", "offset": [80, 95]}, {"key": "a-member-of", "type": "clause", "offset": 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"updated": "2026-05-15T04:24:17+00:00", "also_ask": ["What are the minimum margin requirements and how can they be strategically negotiated?", "Which key terms must be included to ensure enforceability and regulatory compliance?", "What are the primary risks if margin calls are not clearly defined or timely enforced?", "How does this margin regulation compare to industry standards and relevant jurisdictional laws?", "What factors have courts considered when upholding or invalidating margin regulation clauses?"], "drafting_tip": "Specify margin calculation methods to ensure transparency, define adjustment triggers to manage risk, and require timely margin calls to maintain financial stability.", "explanation": "The Margin Regulation clause sets out the requirements and procedures for posting and maintaining collateral, or margin, in financial transactions. It typically details the types of acceptable collateral, the frequency of margin calls, and the process for adjusting margin levels in response to market fluctuations. By establishing clear rules for margin management, this clause helps mitigate credit risk and ensures that parties have sufficient security to cover potential losses."}, "json": true, "cursor": ""}}