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Template:Csa title transfer vs pledge: Difference between revisions
Template:Csa title transfer vs pledge (view source)
Revision as of 11:32, 10 April 2015
, 10 April 2015→{{tag|Title transfer}} vs. {{tag|Pledge}}
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**recipient has only an obligation to redeliver an equivalent security. | **recipient has only an obligation to redeliver an equivalent security. | ||
**Therefore no {{tag|CASS}} question arises at any point. | **Therefore no {{tag|CASS}} question arises at any point. | ||
*'''Pledge''': The {{ | *'''Pledge''': The {{1995csd}} and New York law {{1994csa}} are “pledge” documents: | ||
**The transferor delivers the securities to the receipient to hold for the transferor – the transferor retains title | **The transferor delivers the securities to the receipient to hold for the transferor – the transferor retains title | ||
**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. | ||