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Template:Ny csa 6(c) summ: Difference between revisions
→Rehypothecation in the {{{{{1}}}}}
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===Rehypothecation in the {{{{{1}}}}}=== | ===Rehypothecation in the {{{{{1}}}}}=== | ||
Paragraph {{{{{1}}}prov|6(c)}} is the classic part of your [[security interest]] {{{{{1}}}}} that converts it into a [[title transfer]] CSA, meaning — cough, as with much [[New York law]] frippery — that you might as well not bother with calling this a [[pledge]] or [[security interest]] in the first place. | |||
So I give my asset to you, right, carefully only [[Pledge|pledging]] it as [[Security interest|security]] for my [[indebtedness]] to you, and protect myself from your [[credit risk]] because I ''retain [[beneficial ownership]]'' of the asset. It is mine, not yours, and should you explode into a thousand points of light, then, once I have settled my trading account with your administrator, I can have it back. | So I give my asset to you, right, carefully only [[Pledge|pledging]] it as [[Security interest|security]] for my [[indebtedness]] to you, and protect myself from your [[credit risk]] because I ''retain [[beneficial ownership]]'' of the asset. It is mine, not yours, and should you explode into a thousand points of light, then, once I have settled my trading account with your administrator, I can have it back. | ||