loan value

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Loan value

The maximum percentage of the value of securities that a broker can lend to a margin account customer, as dictated by the Federal Reserve Board in Regulation T.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Loan Value

The maximum amount an individual or company may borrow to buy securities on margin on a certain amount of collateral. The amount of a loan value is governed by Regulation T and by individual companies. See also: Maintenance Requirement.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

loan value

The maximum amount that may be borrowed, using a security as collateral. If the Federal Reserve specifies an initial margin requirement of 50% under Regulation T, $5,000 in securities would have a loan value of $2,500.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
of the central bank, indicated that the tight monetary policy adopted in China has forced many cross-strait Taiwanese enterprises to resort to OBUs of Taiwanese banks for financing, hence raising both the asset and loan values of OBUs, whose total assets increased by US$1.218 billion as of the end of September from a month earlier to hit a record high of US$137.893 billion.
Loan values were 71.1 per cent as of July 31, 2009.
Under the discounted cash-flow system, banks have to calculate their loan values by estimating how profitable future borrowers will likely become, a move that could force them to set aside more loan-loss reserves.
The MPs also suggest loan values be increased to a "level that reflects the realistic costs of pursuing full-time study".
* The life insurance policy is an asset of the business and any cash or loan values become a part of business surplus;
These determinations of the nominal and loan values are not the end of the evaluation process, however.
We saw last autumn that property and mortgage loan values can fall even in a strong real estate market with delinquencies at historical lows.
The economy is in recession, putting pressure on loan values while making deposits cheaper.
Loan values equaled 91.4 percent a year ago, Mercer said.
The small loan market - loan values under $2 million - is a growing opportunity for conduits and Wall Street.
"So we see that loan values don't only move upward," said Brian Olasov, managing director with McKenna Long & Aldridge LLP, Atlanta.