Common Contracts
1 similar Cross-Collateralization Agreement contracts
ContractCross-Collateralization Agreement • July 17th, 2013
Securities and brokerage firms have written many of their account opening documents so that an individual opening a new investment account agrees that if he or she owes money with respect to anyone of his or her accounts that the security company has the right to withdraw the amount owed from a different account. This is generally called a cross-collateralization agreement. In order for a person (or an IRA) to be able to engaged in short sales, margin transactions, options and futures the securities firm wants to be assured of getting paid and so imposes a cross- collateralization agreement or an indemnification agreement.
