Template:Csa Holding and Using Posted Collateral comp

The part of the New York law CSA that undoes all the sterling work that Paragraph {{{{{1}}}|2}} does to establish a {{{{{1}}}|Security Interest}} over collateral posted by a {{{{{1}}}|Pledgor}} to a {{{{{1}}}|Secured Party}}.

Note especially {{{{{1}}}|6(c)}} {{{{{1}}}|Use of Posted Collateral}} — the rehypothecation/reuse right.

The 2016 version is all but the same as the 1994 version, except for a peppering of gratuitous “(VM)s”, until you get to Paragraph {{{{{1}}}|6(d)(ii)(A)}}. All that malarkey about interest transfers, adjustments and reductions at the back end of Paragraph {{{{{1}}}|6(d)}} is new and, candidly, rather to be regretted. Here is a comparison.