customer's loan agreement

An agreement that permits brokerage firms to borrow customers' margined securities in order to cover certain delivery failures or other customers' short sales. A customer's loan agreement must be signed by the customer before borrowing can take place. Compare margin agreement.

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.

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