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Securities loan (no set-off)
This agreement is between an Investment Dealer Member and another entity (including another Investment Dealer Member) in which one party is the lender of securities and the other is the borrower of the securities and it requires that the borrower pledge collateral (money, securities or both) to the lender. In this agreement there is no set-off provision allowing each party to set off and apply the amount owed by the other against any of its obligations to the other party.
Section 5840 of the IDPC Rules requires an Investment Dealer Member to execute a written securities loan agreement for cash and securities loan transactions to avoid margin penalties in Investment Dealer Form 1.
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