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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Gross customer loan book grew by 7 percent to P2 trillion, driven by a double-digit growth in the consumer and middle market segments.
The firm said that its profits increased because of increased customer loan and deposit balances.
Kuwait Finance House (KFH) has implemented robotic process automation systems to support customer loan applications.
In one case, he said, after addressing the initial mistake, the CCB reduced a customer loan by e1/414,000 but later charged the account with the same amount, adding that the CCB made these interventions without notifying its customers.
In one case, after addressing the initial mistake, the CCB reduced a customer loan by e1/414,000 but later charged the account with the same amount, adding that the Co-op made these alterations without notifying its customers.
Summary: Customer deposit growth of 16 percent, customer loan growth of 15 percent and higher fee income were among the key factors that saw BankMed achieve 8 percent growth in profits in 2012 despite the developments taking place in the country and the region.
"Growth was witnessed across all IBQ business lines as total customer deposits increased 22 percent to QR19.4 billion in 2011, while the bank's customer loan portfolio reached QR16.7 billion, a 9 percent increase over 2010," the bank said in the financial statement.
In a statement, HSBC said it will acquire RBS Kazakhstan's personal customer loan and credit card portfolios, together with four branches, 80 ATMs and two support offices.
Specifically, the Notice alleged that Respondent, as a sales and service representative for the Bank, diverted portions of customer loan proceeds on thirteen home-equity loans that Respondent made, authorized and/or booked, by issuing checks from the loan proceeds to make payments on his own credit card accounts (or accounts for which he was an authorized user) and payments on a loan in the name of related persons, or by depositing checks into accounts that were owned or controlled by Respondent.
* Growth--Sears Mortgage, now one of the 10 largest mortgage originators in the U.S., expects to more than double its customer loan base within the next five years.
''The government has now taken a significant part of balance sheet of the bank, above 50 per cent compared to customer loan book,'' Mwangi said.
RCBC's total customer loan portfolio jumped 18 percent to P370.9 billion as corporate loans grew 14 percent, loans to small and medium enterprises (SMEs) by 40 percent growth in SME loans, consumer loans by 17 percent and credit card receivables by 40 percent.

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