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The Margin Lending Agreement serves as the primary legal document for financial institutions in Nigeria providing credit facilities secured by securities portfolios. This document type is essential when establishing a lending relationship where securities serve as collateral, typically used by banks, investment firms, and securities traders operating under Nigerian jurisdiction. The agreement must comply with the Central Bank of Nigeria's regulations, SEC guidelines, and the Banks and Other Financial Institutions Act 2020. It includes comprehensive details about margin requirements, collateral management, risk assessment procedures, and enforcement mechanisms. The Margin Lending Agreement is particularly relevant in the current Nigerian financial market where securities-based lending is growing, and regulatory oversight is increasing.

1. Parties: Identification of the lender and borrower, including full legal names, registration details, and addresses

2. Background: Context of the agreement and brief description of the margin lending arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement, including financial and technical terms

4. Facility Terms: Core terms of the margin loan, including facility limit, purpose, and duration

5. Interest and Fees: Details of interest calculation, applicable fees, and payment terms

6. Margin Requirements: Specification of initial margin, maintenance margin requirements, and margin call procedures

7. Collateral Arrangements: Terms regarding the pledge of securities, valuation methods, and eligible securities

8. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

9. Borrower Covenants: Ongoing obligations of the borrower including financial covenants and reporting requirements

10. Events of Default: Circumstances constituting default and consequences thereof

11. Enforcement Rights: Lender's rights and remedies upon default, including collateral liquidation procedures

12. Regulatory Compliance: Compliance requirements with Nigerian financial regulations and anti-money laundering laws

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes