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Margin Loan Agreement
"I need a Margin Loan Agreement for a Pakistani corporate borrower who will use a portfolio of listed securities as collateral, with a facility limit of PKR 50 million and enhanced default provisions due to the borrower's startup status."
1. Parties: Identifies the lender and borrower with full legal names and addresses
2. Background: Sets out the context of the agreement and basic intention of the parties
3. Definitions and Interpretation: Defines key terms including Margin Requirement, Collateral, Market Value, and other technical terms
4. The Facility: Details of the loan amount, purpose, and drawdown conditions
5. Margin Requirements: Specifies initial and maintenance margin requirements, calculation methods
6. Collateral Arrangements: Details the securities/assets to be provided as collateral and their management
7. Interest and Fees: Specifies interest rates, calculation methods, and applicable fees
8. Representations and Warranties: Standard and specific representations by the borrower
9. Covenants: Positive and negative obligations of the borrower
10. Events of Default: Lists circumstances constituting default and consequences
11. Enforcement Rights: Lender's rights and remedies upon default
12. Payment Mechanics: Details of payment procedures and calculations
13. Changes to Parties: Rules for assignment and transfer of rights
14. Notices: Communication procedures between parties
15. General Provisions: Standard boilerplate clauses including governing law
1. Guarantees: Required when there is a third-party guarantor for the margin loan
2. Multiple Currencies: Include when the facility allows for multiple currency drawings
3. Special Trading Arrangements: Required when specific trading restrictions or preferences apply
4. Additional Security Providers: Include when third parties provide additional security
5. Islamic Finance Provisions: Required for Shariah-compliant margin facilities
6. Joint and Several Liability: Include when there are multiple borrowers
7. Additional Market Disruption: Special provisions for market disruption events
1. Schedule 1 - Collateral Securities: Detailed list of eligible securities and their respective margin values
2. Schedule 2 - Condition Precedent Documents: List of required documents prior to facility activation
3. Schedule 3 - Calculation of Margin: Detailed methodology for calculating margin requirements
4. Schedule 4 - Forms: Standard forms including drawdown notices and margin calls
5. Schedule 5 - Fee Schedule: Detailed breakdown of all applicable fees
6. Schedule 6 - Authorized Representatives: List of persons authorized to act on behalf of each party
7. Appendix A - Risk Disclosure Statement: Mandatory risk disclosures as per regulatory requirements
Authors
Advance
Applicable Law
Approved Exchange
Authorized Person
Available Facility
Business Day
Calculation Date
Collateral
Collateral Account
Collateral Ratio
Collateral Value
Commitment
Custodian
Default Interest Rate
Disposal
Drawing
Event of Default
Facility
Facility Documents
Financial Indebtedness
Holding Account
Initial Margin
Interest Payment Date
Interest Period
Interest Rate
Lender's Rights
Loan
Loan Account
Maintenance Margin
Margin
Margin Call
Margin Deficit
Margin Percentage
Margin Requirement
Market Disruption Event
Market Value
Material Adverse Effect
Maturity Date
Outstanding Amount
Potential Event of Default
Pricing Date
Principal Amount
Proceedings
Qualifying Collateral
Reference Banks
Regulatory Requirement
Relevant Market
Repayment Date
Security
Security Documents
Security Interest
Security Period
Security Provider
Settlement Date
Subsidiary
Tax
Top-up Collateral
Trading Day
Transaction
Transfer
Valuation Date
Valuation Percentage
Valuation Time
Facility Terms
Purpose
Drawdown
Interest
Repayment
Prepayment
Security
Margin Requirements
Collateral Maintenance
Margin Calls
Representations and Warranties
Information Undertakings
General Undertakings
Events of Default
Acceleration
Payment Mechanics
Set-off
Costs and Expenses
Indemnities
Guarantee and Indemnity
Evidence and Calculations
Amendments and Waivers
Changes to Parties
Disclosure and Confidentiality
Notices
Calculations and Certificates
Partial Invalidity
Remedies and Waivers
Governing Law
Enforcement
Jurisdiction
Service of Process
Force Majeure
Anti-Money Laundering
Regulatory Compliance
Transaction Records
Electronic Communications
Assignment and Transfer
Severability
Third Party Rights
Counterparts
Banking
Financial Services
Investment Management
Securities Trading
Wealth Management
Corporate Finance
Asset Management
Private Banking
Legal
Credit
Risk Management
Compliance
Treasury
Securities Operations
Portfolio Management
Client Relations
Financial Control
Trading
Documentation
Credit Officer
Risk Manager
Compliance Officer
Legal Counsel
Investment Manager
Relationship Manager
Portfolio Manager
Credit Risk Analyst
Treasury Manager
Securities Operations Manager
Chief Financial Officer
Head of Lending
Investment Advisor
Financial Controller
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