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Stock Collateral Loan Agreement
"I need a Stock Collateral Loan Agreement for a £5 million loan to be secured against FTSE 100 listed shares, with monthly margin calls and specific provisions for dividend treatments during the loan period starting March 2025."
1. Parties: Identification of lender and borrower with full legal details
2. Background: Context of the loan and collateral arrangement
3. Definitions: Key terms used throughout the agreement including references to relevant legislation and regulations
4. Loan Terms: Principal amount, interest rate, repayment terms and conditions of the loan
5. Collateral Provisions: Description of stock collateral, valuation methods, margin requirements and maintenance
6. Security Interest: Creation and perfection of security interest in the collateral, including registration requirements
7. Representations and Warranties: Standard declarations by both parties regarding their capacity, authority and compliance
8. Events of Default: Circumstances constituting default and their consequences
9. Enforcement Rights: Lender's rights upon default including sale, appropriation and valuation of collateral
10. Regulatory Compliance: Obligations relating to regulatory reporting, client money rules and anti-money laundering requirements
1. Additional Collateral Requirements: Top-up provisions and maintenance of collateral value, used for volatile stock or where additional security is required
2. Voting Rights: Provisions regarding voting rights attached to pledged shares, used when collateral consists of voting shares
3. Cross-Default: Provisions linking default to other agreements, used when parties have multiple agreements
4. Data Protection: Specific provisions relating to GDPR and data protection compliance, used when personal data is processed
5. Cross-Border Provisions: Additional provisions for international transactions, used when parties are in different jurisdictions
1. Schedule 1 - Description of Collateral: Detailed list of pledged stocks including quantity, value and any identifying information
2. Schedule 2 - Valuation Methodology: Agreed method for valuing collateral including frequency and procedures
3. Schedule 3 - Form of Transfer Documents: Standard forms for transferring stock ownership and registration
4. Appendix A - Notices and Communications: Contact details and communication procedures for all parties
5. Appendix B - Margin Call Procedures: Detailed process for margin calls, top-ups and related calculations
Authors
Additional Collateral
Adjustment Date
Affiliate
Aggregate Collateral Value
Applicable Law
Approved Exchange
Approved Securities
Authorisation
Business Day
Calculation Agent
Collateral
Collateral Account
Collateral Ratio
Collateral Transfer
Default Interest
Default Notice
Eligible Securities
Enforcement Event
Event of Default
Facility
Financial Indebtedness
Interest Payment Date
Interest Period
Interest Rate
Lender's Security
Loan
Loan Amount
Margin Call
Margin Requirement
Market Value
Material Adverse Effect
Maturity Date
Permitted Security
Potential Event of Default
Pricing Source
Repayment Date
Security
Security Documents
Security Interest
Security Period
Stock Rights
Tax
Transfer Date
Valuation Date
Valuation Percentage
Valuation Time
Interest and Fees
Repayment Terms
Collateral Requirements
Security Interest
Margin Maintenance
Representations and Warranties
Covenants
Events of Default
Enforcement Rights
Voting Rights
Income and Distributions
Valuation
Additional Collateral
Substitution of Collateral
Transfer Restrictions
Payments and Calculations
Tax Provisions
Costs and Expenses
Indemnification
Assignment and Transfer
Notices
Amendments and Waivers
Confidentiality
Data Protection
Force Majeure
Termination
Governing Law
Jurisdiction
Dispute Resolution
Severability
Entire Agreement
Counterparts
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