Security financial collateral arrangement: Difference between revisions

Latest revision as of 08:14, 7 April 2020

A word about credit risk mitigation

Legal security: Mortgage • Pledge • Lien • Bailment Equitable security: Charge • fixed • floating \| ABWOS \| Equitable lien Credit risk mitigation: Title transfer \| Guarantee \| Letter of credit \| Netting Friends and relations: Rehypothecation \| Equivalent Documents: 1994 NY CSA \| 1995 CSA \| 1995 ISDA CSD (English law) Regulation: LPA 1925 \| Financial Collateral Regulations \| LPMPA 1994 Index: Click ᐅ to expand: Taking security Security Collateral

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A security financial collateral arrangement — to specialists, an “SFCA” — is, well, it’s not a title transfer financial collateral arrangement (“TTCA”), but rather one where collateral is transferred by way of possession only, where the receiver has a security interest and may even have legal title but down not have beneficial ownership of the asset in question ... buuuuuut if rehypothecation is allowed, may be able to sell it anyway. Confused? Don’t be. Well, do be, but don’t feel ashamed about it. All is explained in our article on the Financial Collateral Directive. And, if not in that one, in our section on cognitive dissonance.

Fly, you fools!

But, really, you should fly. Fools.

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-Not a [[title transfer financial collateral arrangement]], but one where [[collateral]] is transferred by way of possession only, where the receiver has a [[security interest]] and may even have  [[legal title]] but down not have [[beneficial ownership]] of the asset in question. All is explained in our article on the [[Financial Collateral Directive]].
+{{a|security|}}A [[security financial collateral arrangement]] — to specialists, an “'''[[SFCA]]'''” — is, well, it’s ''not'' a [[title transfer financial collateral arrangement]] (“'''[[TTCA]]'''”), but rather one where [[collateral]] is transferred by way of possession only, where the receiver has a [[security interest]] and may even have  [[legal title]] but down not have [[beneficial ownership]] of the asset in question ... buuuuuut if [[rehypothecation]] is allowed, may be able to sell it anyway. Confused? Don’t be. Well, ''do'' be, but don’t feel ashamed about it. All is explained in our article on the [[Financial Collateral Directive]]. And, if not in that one, in our section on [[cognitive dissonance]].
 Fly, you fools!
+Or, check out our [[NY VM CSA Anatomy|NY law Variation Margin CSA Anatomy]].
+But, really, you should fly. Fools.
+{{sa}}
+*[[Pledge]]
+*[[Collateral]]
+*[[Rehypothecation]]
+*{{CSA}}