The Margin Loan Agreement serves as the primary legal document governing margin lending relationships between financial institutions and their clients in Canada. This agreement is essential when investors seek to leverage their existing securities portfolio to obtain additional financing for investment purposes. The document must comply with federal banking regulations, provincial securities laws, and IIROC requirements, while also incorporating industry-standard practices for margin lending. A well-structured Margin Loan Agreement will address key aspects such as margin requirements, collateral management, risk disclosures, and default scenarios, providing clear guidelines for both the lender and borrower throughout their lending relationship. It's particularly important in volatile market conditions where margin calls and collateral requirements need to be clearly defined and enforceable.

1. Parties: Identification of the lender (financial institution) and borrower, including full legal names and addresses

2. Background: Context of the agreement, including the borrower's request for margin loan facilities and the lender's agreement to provide them

3. Definitions: Comprehensive definitions of key terms used throughout the agreement, including 'Margin Requirements', 'Collateral', 'Market Value', and 'Events of Default'

4. Loan Facility: Details of the margin loan facility, including maximum amount, purpose, and availability

5. Interest and Fees: Interest rate calculation, payment schedules, and any additional fees or charges

6. Margin Requirements: Specific requirements for maintaining margin, including initial and maintenance margin requirements

7. Collateral: Description of acceptable collateral, valuation methods, and requirements for maintaining collateral

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

9. Covenants: Ongoing obligations of the borrower, including maintaining margin requirements and providing information

10. Events of Default: Comprehensive list of events that constitute default under the agreement

11. Remedies: Lender's rights and remedies upon occurrence of an Event of Default

12. Notices: Requirements for giving notices under the agreement

13. Governing Law and Jurisdiction: Specification of Canadian law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate provisions including amendments, assignments, and severability