Margin Lending Agreement Template for Austria

The Margin Lending Agreement is essential for financial institutions operating in Austria that offer credit facilities secured by financial instruments or other eligible collateral. This document is used when establishing a lending relationship where the borrower pledges securities or other financial assets as collateral, enabling them to obtain financing for further investments or other purposes. The agreement must comply with Austrian financial regulations, including the Banking Act (BWG) and Securities Supervision Act (WAG 2018), as well as relevant EU directives. It typically includes comprehensive provisions on margin requirements, collateral valuation, margin calls, events of default, and enforcement rights, while ensuring compliance with both Austrian and EU consumer protection requirements where applicable.

1. Parties: Identification of the lender (financial institution) and borrower, including their registered addresses and registration details

2. Background: Context of the agreement and brief description of the margin lending arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and interpretation rules

4. Facility and Purpose: Details of the margin lending facility, including amount, purpose, and general terms

5. Drawdown and Utilization: Conditions and procedures for accessing the facility

6. Interest and Fees: Interest calculation methodology, rates, payment schedules, and applicable fees

7. Margin Requirements: Initial margin requirements, maintenance margin levels, and margin calls procedures

8. Collateral Arrangements: Types of eligible collateral, valuation methods, and custody arrangements

9. Representations and Warranties: Standard representations and warranties from both parties

10. Covenants: Ongoing obligations of the borrower, including financial covenants and reporting requirements

11. Events of Default: Circumstances constituting default and consequences

12. Rights and Remedies: Lender's rights upon default, including liquidation of collateral

13. Payments and Calculations: Payment mechanics, calculation periods, and currency provisions

14. Communications: Methods and requirements for formal communications between parties

15. Governing Law and Jurisdiction: Austrian law as governing law and jurisdiction provisions