The Loan Consent Agreement

The Loan Consent Agreement

You can add your own corporate logo and slogan to customize it. Finally, you can save this template as a pdf and simply print this agreement. When a customer opens a margin account at DriveWealth, the customer must sign the margin agreement. The margin agreement contains a number of conditions accepted by the customer on behalf. If these DriveWealth Terms of Use are changed, a prior written notification must be made at least 30 days before the changes. Margin Disclosure DocumentThe use of the margin carries additional risks. For this reason, DriveWealth is required to make a disclosure document available to all margina customers at the time of account opening and thereafter. Disclosures: A client`s credit agreement is a contract between a broker and a broker-cum that allows him to lend securities and assets to the margin account managed by the client. With permission, DriveWealth has the right to use its customers` securities as a bank credit guarantee in a process called remypotheque.

Amount, the rule rehypothecatedSEC 15c3-3, The customer protection rule can be, allows DriveWealth to use shares with a value of 140% of the customer`s debit balance as collateral for a bank loan. DriveWealth can only borrow the amount it has lent to the customer, but it can guarantee this loan with shares worth 140% of the balance. The example below clarifies this point: 😀 margin of demand. T of Regulation T is 50%. A client buys back shares at a total cost of $100,000 and deposits 50,000 $US to the company. The company lends $50,000 to the customer. The broker wants to replace the $50,000 he lent to the client by paying himself in a bank. The amount she can borrow from the bank using the client`s portfolio as collateral for the loan is $50,000. However, the bank will need more than $50,000 in collateral to secure its loan.

The broker-trader can use shares worth 140% of the client`s debit balance or 70,000 $US and this as collateral for the rehypocate loan. The remaining $30,000 of the client`s shares are called excess margin securities. Excess marginal securities must be separated, which means that the broker sets these shares aside and does not use them as collateral. DriveWealth must not borrow more than a customer borrows. The 140% rule applies to the amount of stock that can be used as collateral, not the amount that can be borrowed.