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Template:Csa title transfer vs pledge: Difference between revisions
Template:Csa title transfer vs pledge (view source)
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**Recipient holds securities as transferor's custodian subject to a {{tag|security interest}} securing their obligation under the swap. | **Recipient holds securities as transferor's custodian subject to a {{tag|security interest}} securing their obligation under the swap. | ||
**The custody arrangement only exists while recipient holds the security, not before. | **The custody arrangement only exists while recipient holds the security, not before. | ||
**Under US iterations of this form (e.g. the {{1994csa}} the pledgee may nonetheless be entitled to sell the pledged asset absolutely, under a process known as [[rehypothecation]]. Don’t laugh. [[Amwell J|We]] think this converts the pledge into a [[title transfer collateral arrangement]] - at least at the point of [[rehypothecation]], if not before. | **Under US iterations of this form (e.g. the {{1994csa}}) the pledgee may nonetheless be entitled to sell the pledged asset absolutely, under a process known as [[rehypothecation]]. Don’t laugh. [[Amwell J|We]] think this converts the pledge into a [[title transfer collateral arrangement]] - at least at the point of [[rehypothecation]], if not before. | ||