Form of Initial Margin Clause Samples

Form of Initial Margin. Unless otherwise agreed Initial Margin must be paid in cash. The currency of the cash Initial Margin you pay to us shall be the currency of the relevant underlying Transaction (if applicable), although we may in our discretion decide to accept payments of Initial Margin in cash in other currencies from time to time. Clean title: You agree that all right, title and interest in and to any Initial Margin in cash which you transfer to us shall vest in us free and clear of any security interest, lien, claims, charges, encumbrance or other restriction. Notwithstanding the name of any account opened by us in respect of our relationship with you or the use of terms such as “margin” or “collateral” which are used to reflect terminology used in the market for such transactions, nothing in these provisions is intended to create or does create any mortgage, charge, lien, pledge, encumbrance or other security interest in any Initial Margin transferred hereunder. Set off on default or termination: If at any time any of your Obligations are due owing and unsatisfied, we may set off the balance of Initial Margin in cash owed by us to you against your Obligations (as reasonably valued by us) as they become due and payable to us and we shall be obliged to pay to you (or entitled to claim from you, as appropriate) only the net balance after all Obligations have been taken into account. The net balance, if any, shall take into account the Liquidation Amount payable under the Netting Claus e of this Agreement. Further assurance: You agree to execute such further documents and to take such further steps as we may reasonably require to be registered as owner of or obtain legal title to the Initial Margin, enable us to exercise our rights or to satisfy any market requirement.