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| {{nycsaanat|6(c)}}This is the classic part of your security interest {{nyvmcsa}} 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. | | {{Manual|MCAN|2016|6(c)|Paragraph|6(c)|short}} |
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| So I give my asset to you, right, carefully only [[Pledge|pledging]] it as [[Security interest|security]] for my [[indebtedness]] to you, and protect myself from your [[credit risk]] because I ''retain [[beneficial ownership]]'' of the asset. It is mine, not yours, and should you explode into a thousand points of light, then, once I have settled my trading account with your administrator, I can have my asset back.
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| Right?
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| Except that you have the right to sell my asset, absolutely, to anyone else you want to, at any time, or actually, damn the torpedoes, hold it in your own name. Whereupon my claim against you is for the return of an asset you don’t have, or have put into your general [[bankruptcy estate]], so you would have to go and buy it in the market, but since you have blown up, you can’t realistically do that, so I am, after all, your unsecured creditor and all this talk of security interests is a nonce.
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| Note the odd coda: references to {{nyvmcsaprov|Posted Collateral (VM)}} etc — should be deemed to assume you still own it, even though if you don’t? This is the dead giveaway here. This may be an attempt to avoid having to create an “{{vmcsaprov|Equivalent Credit Support}}” concept, though since {{icds}} went full metal jacket on that enterprise as long ago as in the {{csa}}, it is not like we don’t have suitable, road-tested — if a little anal — language.
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| Oh, what sad times we live in.
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| {{sa}}
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| *[[Rehypothecation]]
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| *[[Title transfer collateral arrangement]]
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