Customer's loan

(redirected from Customers' Loans)

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 ?
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.
The police allege he illegally collected money by swindling the bank in similar schemes and embezzling Sanwa customers' loans from November 1994 to January this year.
Of those refinances, about two thirds are refinances of customers' loans from other lending institutions.
8 per cent year-on-year increase), and net customers' loans increased by 5.
The bank said that it has launched a new mortgage software platform that makes it easier for loan officers to instantaneously view and manage customers' loans.
Some lenders are even sneakily adding protection policies to customers' loans without asking if they want it.
However, banks have cautioned that these figures do not reflect new net lending, but reflect restructuring and refinancing of existing customers' loans.
Its latest mortgage is a three-year discounted flexible deal which varies the rate depending on customers' loans.