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 ?
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.
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.
9 per cent (+$922 million) to $16,637 million, and customers' loans were up 4.
The bank also claimed it provided almost half of the country's mortgages and approved 70% of customers' loans.
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.
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.
However, banks have cautioned that these figures do not reflect new net lending, but reflect restructuring and refinancing of existing customers' loans.
Some lenders are even sneakily adding protection policies to customers' loans without asking if they want it.