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Credit Support Agreement
"I need a Belgian law Credit Support Agreement between our bank and a hedge fund client, focusing on government bonds and cash as eligible collateral, with daily valuation requirements and a minimum transfer amount of 鈧500,000."
1. Parties: Identification of the parties entering into the agreement, including their legal names, registration details, and addresses
2. Background: Context of the agreement, reference to any master agreement, and purpose of the credit support arrangement
3. Definitions: Detailed definitions of terms used throughout the agreement, including financial and technical terms specific to credit support arrangements
4. Credit Support Obligations: Core obligations regarding the provision of credit support, including delivery amount, return amount, and timing
5. Valuation and Calculations: Methods for calculating exposure, valuation percentages, and determining credit support amounts
6. Transfer Timing and Conditions: Specific requirements and timeframes for transferring collateral and return of excess collateral
7. Custody Arrangements: Provisions regarding the holding and safekeeping of posted collateral
8. Rights and Remedies: Legal rights and remedies available to parties in case of default or dispute
9. Representations and Warranties: Standard and specific representations made by each party regarding their capacity and authority
10. Tax Provisions: Treatment of taxes related to collateral transfers and income
11. Termination Provisions: Circumstances and procedures for terminating the agreement
12. Governing Law and Jurisdiction: Specification of Belgian law as governing law and jurisdiction for disputes
1. Eligible Credit Support: Detailed specifications of acceptable forms of collateral, used when parties want to limit or expand eligible collateral types
2. Independent Amount: Additional credit support requirements beyond exposure calculations, included when parties agree to additional buffer amounts
3. Substitute Credit Support: Provisions allowing for substitution of posted collateral, included when parties want flexibility in managing collateral
4. Special Provisions for Initial Margin: Specific requirements for initial margin if required under regulatory requirements
5. Dispute Resolution: Detailed procedures for resolving valuation or calculation disputes, included when parties want specific dispute mechanisms
6. Additional Termination Events: Specific additional circumstances that trigger termination, included based on party-specific requirements
7. Control Agreements: Provisions regarding third-party custodian arrangements, included when using third-party custody
1. Schedule 1: Eligible Credit Support and Valuation Percentages: Detailed list of acceptable collateral types and their corresponding valuation percentages
2. Schedule 2: Valuation and Calculation Procedures: Specific procedures and methodologies for calculating exposure and collateral requirements
3. Schedule 3: Notice Details: Contact information and procedures for delivering notices under the agreement
4. Schedule 4: Transfer Timing Requirements: Detailed timing requirements for collateral transfers and returns
5. Appendix A: Form of Eligibility Notice: Standard form for notifying changes in eligible credit support
6. Appendix B: Form of Transfer Notice: Standard form for collateral transfer notifications
7. Appendix C: Custody Account Details: Specific account details and procedures for collateral custody arrangements
Authors
Banking
Financial Services
Investment Management
Insurance
Securities Trading
Asset Management
Corporate Treasury
Pension Fund Management
Investment Banking
Commodities Trading
Legal
Treasury
Risk Management
Compliance
Trading Operations
Financial Operations
Credit Risk
Collateral Management
Securities Operations
Regulatory Affairs
Treasury Manager
Risk Management Officer
Legal Counsel
Compliance Officer
Financial Controller
Collateral Manager
Trading Operations Manager
Credit Risk Analyst
Securities Operations Manager
Financial Operations Director
Head of Trading
Chief Financial Officer
Legal Director
Regulatory Compliance Manager
Portfolio Manager
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