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 ?
General Motors Corporation (NYSE: GM), a United States-based automaker, is likely to ask its GMC and Buick dealers to provide customers loan vehicles during warranty service.
Another concern is Ukrinbank's high share of overdue indebtedness of its customers loan portfolio, the large amount of funds attracted from the National Bank of Ukraine as refinancing and the small portion of free capital.
Halifax is linking with internet property service Easier to give customers loan decisions within six minutes.
Sainsbury's Bank launched into the larger loans market on 15 October 2014 offering both new and existing customers loans of up to GBP35,000 at 6.9% APR Representative.
Reducing customers loans by an average of $121,000 in forgiving principal while modifying first mortgages
New Green Additional Borrowing offers existing Nationwide mortgage customers loans of between PS5,000 and PS20,000 to fund a variety of non-structural, energy efficient home improvements.
New Green Additional Borrowing offers existing Nationwide mortgage customers loans of between PS5000 and PS20,000 to fund a variety of non-structural, energy-efficient home improvements.
Under the deal, customers loaned the firm either pounds 2000 or pounds 4000 and got a monthly supply of chocolate.
Under the deal, customers loaned the company either pounds 2,000 or pounds 4,000 but instead of interest, they received a monthly supply of chocolate.