Illiquid Security definition

Illiquid Security any security other than one which is marketable. For purposes of this definition, a security is marketable only if it (i) is traded on or through a national or other established securities exchange or the National Association of Securities Dealers, Inc. Automated Quotation System, (ii) can be sold, with or without volume limitations, to the general public by a Member receiving a distribution of such security, and (iii) is not subject to contractual restrictions on transfer.

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Illiquid Security means a security in which no trade has been executed for a period of six months (the “illiquid period”).

Illiquid Security means a security that cannot be sold or disposed of in the ordinary course of business within seven calendar days at approximately the value assigned to it in valuing the account.

Examples of Illiquid Security in a sentence

• An Illiquid Security may be held in a Side Pocket Account for any period of time, subject to the sole discretion of the General Partner.

• If in accordance with either clause 17 or clause 18 the Drag Value or Tag Value respectively is to be the Fair Value in respect of any illiquid non-cash consideration (Illiquid Securities), the Fair Value in respect of any Illiquid Securities is such price per Illiquid Security as may be the price per Illiquid Security determined by a valuation expert in accordance with paragraphs 2 to 8 below.

• Such investment may be designated as a new Illiquid Security investment.

• The Illiquid Security position in a Side Pocket Account shall be carried at fair value as determined in good faith by the General Partner.

• In the event an Illiquid Security becomes a Publicly Traded Security, such investment shall be reclassified under this Agreement as an Asset in the Trading Portfolio and no longer an Illiquid Security.

• The account shall not acquire any Illiquid Security if, immediately after the acquisition, the account would have invested more than five percent of its total assets in Illiquid Securities.

More Definitions of Illiquid Security

Illiquid Security means any security that cannot be sold or disposed of in the ordinary course of business within seven calendar days at approximately the value ascribed to it by the Pool, including repurchase agreements having maturities of greater than seven days, non-negotiable securities and securities for which no market exists (other than non-negotiable securities which may be redeemed with the issuer at par within seven days).

Illiquid Security means, as of any date, any security (a) that has any material condition to or restriction on the ability of the Borrower, any Person to whom such security has been pledged by the Borrower, any purchaser of such security in connection with any foreclosure thereon by such Person, or any assignee or other transferee of any of the foregoing, to sell, assign, transfer, pledge, hypothecate or otherwise encumber or liquidate the same in a commercially reasonable time and manner (other than customary securities law arrangements or restrictions), whether or not such condition or restriction is intrinsic to such security, provided that any condition or restriction that could reasonably be expected to (i) prohibit or delay any such sale, assignment, transfer, pledge, hypothecation, encumbrancing or liquidation for more than five (5) Business Days, or (ii) require any payment (other than a nominal amount) in connection therewith, shall be deemed to be such a material condition or restriction within the meaning of this defined term, or (b) that constitutes a Delayed Settlement Security.