general loan and collateral agreement

General loan and collateral agreement

The agreement governing the broker-dealer's borrowing against listed securities from a bank for the purpose of carrying on business and making transactions. See: Broker loan rate.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Broker's Loan

A loan to a broker or brokerage by a bank. Brokers take out broker's loans usually to fund margin accounts for their clients, but also to fund underwriting purchases. Occasionally, brokerages borrow these loans to buy securities for themselves as well. Broker's loans are payable on 24 hours notice, and carry interest rates that are about one point higher than short-term rates. See also: Broker call loan.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

general loan and collateral 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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