Security financial collateral arrangement
A word about credit risk mitigation
|
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 ... 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 law Variation Margin CSA Anatomy.
But, really, you should fly. Fools.