Document background
The Margin Lending Agreement is a critical document used in financial markets where lenders provide credit facilities secured by financial instruments as collateral. This agreement, governed by Danish law and compliant with EU regulations, is essential for establishing the legal framework between financial institutions and their clients engaging in margin lending transactions. The document details crucial aspects such as facility terms, margin requirements, eligible collateral, valuation methodologies, and enforcement rights. It is particularly relevant in scenarios where financial institutions extend credit to professional investors, investment funds, or other eligible borrowers against their securities portfolios. The agreement ensures compliance with Danish financial regulations, including the Danish Financial Business Act and Capital Markets Act, while incorporating relevant EU directives such as MiFID II requirements where applicable.
