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Margin Loan Agreement
"I need a Margin Loan Agreement under German law for a €10 million facility between Deutsche Bank AG and a corporate borrower, with standard equity securities as collateral and market-standard margin maintenance requirements."
1. Parties: Identification of the lender and borrower, including full legal names and addresses
2. Background: Context of the agreement and general purpose of the margin loan facility
3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement, including financial terms, calculation methodologies, and business day conventions
4. The Facility: Core terms of the loan facility including amount, purpose, and availability period
5. Drawdown Conditions: Conditions precedent and procedural requirements for drawing down the loan
6. Interest and Fees: Interest calculation methodology, payment dates, and applicable fees
7. Margin Requirements: Specification of initial and maintenance margin requirements, calculation methods, and valuation principles
8. Collateral Arrangements: Terms governing the provision, maintenance, and administration of collateral
9. Representations and Warranties: Standard and specific representations and warranties from the borrower
10. Covenants: Ongoing obligations of the borrower including financial covenants and information requirements
11. Events of Default: Circumstances constituting default and consequences thereof
12. Enforcement Rights: Lender's rights and procedures for enforcing security and accelerating the loan
13. Payments and Calculations: Payment mechanics, calculation conventions, and currency provisions
14. Changes to Parties: Transfer and assignment provisions
15. Notices: Communication requirements and contact details
16. General Provisions: Miscellaneous legal provisions including governing law, jurisdiction, and severability
1. Multi-currency Provisions: Additional terms for facilities available in multiple currencies, including conversion mechanisms and currency-specific requirements
2. Retail Client Provisions: Additional consumer protection provisions required when the borrower is a retail client
3. Special Collateral Provisions: Specific terms for particular types of collateral such as funds, derivatives, or non-standard securities
4. Tax Provisions: Detailed tax provisions where specific tax arrangements or withholding requirements apply
5. Multiple Borrower Provisions: Additional terms for facilities with multiple borrowers, including joint and several liability
6. Account Bank Arrangements: Specific provisions where a third-party account bank is involved
7. Market Disruption: Provisions dealing with market disruption events and their consequences
8. Regulatory Compliance: Additional compliance requirements for specific regulatory regimes
1. Schedule 1 - Form of Drawdown Request: Standard form for requesting drawdowns under the facility
2. Schedule 2 - Eligible Collateral: Detailed list of acceptable collateral types and associated haircuts
3. Schedule 3 - Calculation of Margin Requirements: Detailed methodology for calculating initial and maintenance margin requirements
4. Schedule 4 - Form of Compliance Certificate: Standard form for periodic compliance certification
5. Schedule 5 - Contact Details: Detailed contact information for all parties and roles
6. Appendix 1 - Standard Terms and Conditions: General terms and conditions applicable to all margin loans
7. Appendix 2 - Fee Schedule: Detailed breakdown of all applicable fees and charges
8. Appendix 3 - Collateral Valuation Principles: Methodology and principles for valuing different types of collateral
Authors
Banking
Financial Services
Investment Management
Securities Trading
Asset Management
Wealth Management
Private Banking
Corporate Finance
Investment Banking
Hedge Funds
Private Equity
Legal
Compliance
Risk Management
Credit
Trading
Operations
Portfolio Management
Documentation
Treasury
Client Relations
Financial Control
Collateral Management
Investment Management
Legal Counsel
Compliance Officer
Risk Manager
Credit Officer
Relationship Manager
Portfolio Manager
Trading Manager
Operations Manager
Financial Controller
Credit Risk Analyst
Legal Director
Head of Lending
Investment Manager
Wealth Manager
Collateral Manager
Documentation Manager
Treasury Manager
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