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Template:Csa Holding and Using Posted Collateral summ: Difference between revisions
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====Care of Posted Collateral | ====Care of Posted Collateral==== | ||
You can basically stop reading after “Without limiting the {{{{{1}}}|Secured Party}}’s rights under Paragraph {{{{{1}}}|6(c)}}”. Because the {{{{{1}}}|Secured Party}}’s rights under {{{{{1}}}|6(c)}} basically allow it to nuke your [[security interest]] the moment it receives your collateral. It can ''give'' your carefully pledged asset away. | You can basically stop reading after “Without limiting the {{{{{1}}}|Secured Party}}’s rights under Paragraph {{{{{1}}}|6(c)}}”. Because the {{{{{1}}}|Secured Party}}’s rights under {{{{{1}}}|6(c)}} basically allow it to nuke your [[security interest]] the moment it receives your collateral. It can ''give'' your carefully pledged asset away. | ||
In this way does security interest collateral arrangement with rehypothecation convert itself, for all intents and purposes, into a title transfer collateral arrangement. | |||
====Rehypothecation under a New York law CSA==== | ====Rehypothecation under a New York law CSA==== | ||
Paragraph {{{{{1}}}|6(c)}} is the classic part of your [[security interest]] CSA 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. | Paragraph {{{{{1}}}|6(c)}} is the classic part of your [[security interest]] CSA 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. | ||