Margin Agreement Template for Australia
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Margin Agreement
"I need an Australian law Margin Agreement for use between our hedge fund and international trading partners, with specific provisions for cross-border collateral transfers and multiple currency support, to be implemented by March 2025."
1. Parties: Identification of the contracting parties and their legal status
2. Background: Context of the agreement and relationship between the parties
3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation
4. Margin Requirements: Core obligations regarding posting and maintaining margin, including calculation methodologies
5. Margin Transfer and Settlement: Procedures and timing for transferring margin between parties
6. Eligible Collateral: Types of acceptable collateral and their valuation methods
7. Interest and Distributions: Treatment of interest, dividends, and other distributions on posted collateral
8. Events of Default: Circumstances constituting default and consequences
9. Close-out and Netting: Procedures for termination and calculation of final obligations
10. Representations and Warranties: Standard legal assurances from each party
11. Dispute Resolution: Procedures for resolving disagreements
12. Governing Law and Jurisdiction: Choice of law and jurisdiction for disputes
13. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Regulatory Compliance: Specific provisions for regulated entities or activities, used when either party is subject to specific regulatory requirements
2. Cross-Border Provisions: Additional terms for international transactions, used when parties are in different jurisdictions
3. Initial Margin Requirements: Specific provisions for initial margin requirements, used when transactions are subject to mandatory initial margin rules
4. Segregation Requirements: Terms for segregation of collateral, used when required by regulation or agreed by parties
5. Third Party Custodian: Provisions for use of a custodian, used when parties agree to third-party holding of collateral
6. Special Conditions: Specific terms for unique circumstances or requirements, used when standard terms need modification
1. Schedule 1 - Margin Calculation: Detailed methodology for calculating margin requirements
2. Schedule 2 - Eligible Collateral and Haircuts: List of acceptable collateral types and applicable valuation haircuts
3. Schedule 3 - Contact Details: Administrative and operational contact information for both parties
4. Schedule 4 - Forms and Notices: Standard forms for margin calls, transfers, and other notices
5. Schedule 5 - Account Details: Banking and securities account information for transfers
6. Appendix A - Credit Support Document Forms: Standard documentation for third-party credit support if applicable
7. Appendix B - Jurisdictional Requirements: Specific requirements for relevant jurisdictions
Authors
Additional Margin
Adjustment Date
Approved Bank
Australian Business Day
Authorised Person
Base Currency
Business Day
Call Amount
Close-out Amount
Collateral
Credit Support Amount
Credit Support Balance
Default Interest
Delivery Amount
Dispute Resolution Procedure
Distribution Amount
Eligible Collateral
Eligible Credit Support
Encumbrance
Event of Default
Excess Margin
Exchange Rate
Exposure
Financial Services Licence
Haircut
Independent Amount
Initial Margin
Interest Amount
Interest Period
Interest Rate
Margin
Margin Call
Margin Deficit
Margin Excess
Margin Period of Risk
Margin Threshold
Market Value
Minimum Transfer Amount
Notification Time
Posted Collateral
Potential Event of Default
Reference Price
Regular Settlement Day
Relevant Jurisdiction
Required Margin
Return Amount
Security Interest
Settlement Day
Spot Price
Standard Settlement Time
Termination Amount
Transfer
Transfer Date
Valuation Agent
Valuation Date
Valuation Percentage
Valuation Time
Value
Variation Margin
Margin Calculation
Collateral Transfer
Eligible Collateral
Valuation
Interest and Distributions
Substitution Rights
Segregation
Rehypothecation Rights
Events of Default
Close-out Netting
Set-off Rights
Representations and Warranties
Covenants
Dispute Resolution
Termination Rights
Currency Provisions
Tax Provisions
Notices
Assignment
Amendments
Confidentiality
Force Majeure
Regulatory Compliance
Governing Law
Jurisdiction
Third Party Rights
Records and Documentation
Operational Requirements
Custodian Provisions
Financial Services
Banking
Investment Management
Securities Trading
Derivatives Trading
Asset Management
Insurance
Pension Fund Management
Commodities Trading
Investment Banking
Legal
Compliance
Risk Management
Trading Operations
Collateral Management
Credit Risk
Treasury
Portfolio Management
Trading
Operations
Finance
Regulatory Affairs
Legal Counsel
Compliance Officer
Risk Manager
Trading Operations Manager
Collateral Manager
Credit Risk Officer
Treasury Manager
Portfolio Manager
Trading Desk Manager
Operations Director
Financial Controller
Chief Risk Officer
Chief Legal Officer
Chief Compliance Officer
Head of Trading
Head of Operations
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