Customer's loan

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Customer's loan

Agreement signed by a margin customer that allows a broker to borrow margin securities up to the level of the customer's debit balance to help cover other customers' short positions.

Customer's Loan

An agreement that a client may make with a brokerage allowing the brokerage to borrow the client's margin securities to cover short sales and fail to delivers made by other clients. Margin securities are securities that the client uses as collateral in order to borrow from the brokerage and buy other securities. Even though the brokerage possesses the margin securities, they still belong to the client. As a result the brokerage must have a customer's loan agreement on file to use the securities for other purposes. A customer's loan agreement should not be confused with a margin agreement. See also: Margin account.
References in periodicals archive ?
Two officers with extensive knowledge and expertise in SBA lending joined the Bank in 2004 and helped the Bank gain the Preferred Lender designation which allows the Bank to be more responsive to customers' loan requests.
In the complaints and lawsuits, Polo is accused of pocketing customers' loan money, conning elderly homeowners out of their property through complex reverse mortgages, forging documents to secure bank loans and forcing borrowers who canceled their loans to pay thousands of dollars in hidden termination fees.
If we can't process customers' loan applications, that's a big, costly problem," says Countrywide's vice president of branch standards, John Evans.
The head office will oversee local branches to determine whether to grant corporate customers' loan requests, it said.
Tomlinson said that he expects Mark IV to allow the bank's lenders and loan document personnel to achieve underwriting consistency across all locations and improve efficiency throughout the loan process, enabling the bank to respond more rapidly to customers' loan needs.
Sallie Mae supports these initiatives, as each is striving to answer our customers' loan information needs, " stated Paul Carey, executive vice president.
The Company's products and services include flood zone determination services, real estate tax data management services, computerized tracking of insurance for leased collateral and mortgages, and outsourcing services for certain tasks related to customers' loan or lease portfolios.
Hatch alleges that Fleet shared with various telemarketers data about its mortgage customers, including contact information, customers' loan account number, and data about the nature and use of customers' mortgage loan account.
The bank also claimed it provided almost half of the country's mortgages and approved 70% of customers' loans.
8 percent year-on-year increase), and net customers' loans increased by 5.
The terms and conditions of our customers' loans and deposit accounts will not be affected whatsoever.