Common use of Underlying Collateral Calls Clause in Contracts

Underlying Collateral Calls. After the initial underlying collateral for an extension of nonpurpose credit has been received, subsequent underlying collateral calls may be made by Clearing Agent at its discretion. Clearing Agent shall calculate the maintenance requirement and notify Introducing Firm of any amounts due. Introducing Firm shall be responsible for issuing the underlying collateral call to its customer and obtaining the amount due directly from Introducing Firm’s customer. If Introducing Firm fails to take the appropriate action, Clearing Agent reserves the right to collect the amount due directly from Introducing Firm’s customer. Introducing Firm agrees to cooperate with Clearing Agent in complying with and obtaining underlying collateral in response to such calls.