Model Non-Margin Securities Account Control Agreement Sample Contracts
MODEL NON-MARGIN SECURITIES ACCOUNT CONTROL AGREEMENTModel Non-Margin Securities Account Control Agreement • June 24th, 2008
This document is intended to help brokers understand the purposes, effect and requirements imposed on a broker entering into a non-margin securities account control agreement. The model control agreement (MCA) presented here, developed with input from certain members of both the Investment Industry Association of Canada (IIAC) and the Canadian Bankers Association (CBA), is an example of a standard- form agreement that might be used. It is provided as a starting point for discussion and as a sample precedent that can be adapted, in whole or in part, to the extent it is helpful and depending on the requirements of the parties in a specific transaction. Certain of its provisions may not be suitable in all situations for either lenders or brokers. The following is not a complete summary of the MCA or broker obligations under the agreement, however, it provides brokers with a checklist that can be used with the MCA or other control agreement to help brokers ask the right questions to best p