��������Ƶ

The Margin Lending Agreement is essential for financial institutions offering leveraged securities trading or investment facilities in Germany. This document is used when a lender provides credit secured by securities collateral, requiring compliance with German banking regulations (KWG), securities laws (WpHG), and civil code provisions (BGB). The agreement sets out critical terms including margin requirements, collateral arrangements, valuation methodologies, and enforcement rights. It incorporates specific German regulatory requirements regarding client classification, risk disclosure, and documentation standards. The agreement is particularly important for financial institutions managing credit risk while providing investment leverage to clients, whether institutional or retail, and must adapt to different client categories under German law.

1. Parties: Identification of the lender (financial institution) and borrower, including registration details required under German law

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

3. Definitions and Interpretation: Definitions of key terms including Margin Loan, Collateral, Margin Call, Margin Requirement, and other technical terms

4. The Facility: Details of the margin lending facility, including amount, purpose, and conditions precedent

5. Margin Requirements: Specification of initial and maintenance margin requirements, calculation methodologies

6. Collateral Arrangements: Provisions regarding the pledge of securities, maintenance of collateral, and voting rights

7. Margin Calls and Valuation: Procedures for margin calls, valuation of collateral, and timing requirements

8. Interest and Fees: Interest calculation, payment terms, and applicable fees

9. Representations and Warranties: Standard and specific representations required under German law

10. Covenants: Ongoing obligations of the borrower, including information requirements

11. Events of Default: Circumstances constituting default and consequences

12. Enforcement Rights: Lender's rights upon default, including collateral liquidation procedures

13. Tax Provisions: Tax-related obligations and withholding requirements

14. Notices: Communication procedures and contact details

15. Governing Law and Jurisdiction: Confirmation of German law governance and jurisdiction