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The Margin Loan Agreement is a specialized financial contract used in New Zealand when a lender provides credit facilities secured against a portfolio of eligible securities. This document is essential when investors seek to leverage their existing investment portfolio to access additional funding for further investments or other purposes. The agreement must comply with New Zealand's regulatory framework, particularly the Financial Markets Conduct Act 2013 and Credit Contracts and Consumer Finance Act 2003. It includes crucial elements such as facility terms, margin requirements, risk disclosures, and enforcement provisions. The document is designed to protect both the lender's security interest and the borrower's rights while ensuring transparency and regulatory compliance in the margin lending relationship.

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

2. Background: Context of the agreement, purpose of the margin loan facility, and relationship between parties

3. Definitions and Interpretation: Key terms used throughout the agreement, including financial terms, margin requirements, and technical definitions

4. Facility Details: Loan amount, purpose, term, and basic operational parameters of the margin loan

5. Interest and Fees: Interest calculation method, rates, payment frequency, and all applicable fees

6. Security Arrangements: Details of securities provided as collateral, including registration and maintenance requirements

7. Margin Requirements: Loan-to-value ratios, calculation methods, and maintenance requirements

8. Margin Calls: Triggers for margin calls, notification process, response timeframes, and consequences of non-compliance

9. Representations and Warranties: Standard and specific warranties from the borrower regarding capacity, authority, and understanding of risks

10. Borrower Obligations: Ongoing obligations including maintaining margin requirements, providing information, and compliance with laws

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

12. Enforcement Rights: Lender's rights upon default, including power of sale and application of proceeds

13. General Provisions: Standard contractual provisions including notices, amendments, assignments, and governing law