Margin Loan Agreement for Malta
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Margin Loan Agreement
"I need a standard Margin Loan Agreement under Maltese law for a corporate borrower, with a single-currency (EUR) facility of 鈧5 million, using listed equities as collateral, to be completed by March 2025."
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1. Parties: Identification of the lender and borrower with full legal names and addresses
2. Background: Context of the agreement and relationship between the parties
3. Definitions and Interpretation: Defined terms, interpretation rules, and construction principles
4. Loan Facility: Core terms of the loan including amount, purpose, and availability
5. Interest and Fees: Interest calculation, payment terms, and applicable fees
6. Margin Requirements: Initial margin, maintenance margin requirements, and valuation methods
7. Collateral Arrangements: Details of eligible collateral, perfection requirements, and substitution rights
8. Margin Calls and Maintenance: Process for margin calls, timing of deposits, and consequences of failure
9. Representations and Warranties: Standard and specific representations by borrower regarding capacity, collateral ownership, etc.
10. Covenants: Ongoing obligations of the borrower including financial covenants and reporting requirements
11. Events of Default: Circumstances constituting default and consequences
12. Enforcement Rights: Lender's rights upon default including collateral liquidation
13. Payments and Calculations: Payment mechanics, calculation periods, and business day conventions
14. Notices: Communication methods and contact details
15. Governing Law and Jurisdiction: Choice of Maltese law and jurisdiction provisions
1. Multiple Currency Provisions: Required if the facility allows for multiple currency drawings or collateral
2. Regulatory Compliance: Specific section for detailed regulatory requirements if dealing with regulated entities
3. Special Collateral Provisions: Required for complex collateral arrangements or special asset classes
4. Tax Provisions: Detailed tax clauses if cross-border elements or special tax considerations apply
5. Assignment and Transfer: Include if transferability of the loan or collateral is contemplated
6. Guarantee Provisions: Required if third-party guarantees are part of the security package
7. Client Classification: Required if dealing with retail clients under MiFID regulations
8. Market Disruption: Provisions dealing with market disruption events if sophisticated parties involved
1. Schedule 1 - Loan Terms: Detailed commercial terms including facility amount, interest rates, and fees
2. Schedule 2 - Eligible Collateral: List of acceptable collateral types and applicable haircuts
3. Schedule 3 - Margin Calculation: Detailed methodology for calculating margin requirements
4. Schedule 4 - Form of Margin Call Notice: Standard form for margin call notifications
5. Schedule 5 - Form of Collateral Transfer Notice: Standard form for transferring or substituting collateral
6. Schedule 6 - Contact Details: Detailed contact information for all notices and communications
7. Appendix A - Account Details: Banking and securities account information
8. Appendix B - Required Documents: List of supporting documents required from the borrower
Authors
Banking
Financial Services
Investment Services
Wealth Management
Securities Trading
Asset Management
Private Banking
Corporate Finance
Investment Banking
Legal
Compliance
Risk Management
Credit
Treasury
Securities Operations
Wealth Management
Portfolio Management
Financial Control
Client Services
Collateral Management
Legal Counsel
Compliance Officer
Risk Manager
Credit Officer
Relationship Manager
Portfolio Manager
Securities Operations Manager
Treasury Manager
Financial Controller
Investment Advisor
Collateral Manager
Credit Risk Analyst
Legal Director
Head of Lending
Chief Risk Officer
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