Subordination Agreement Broker Dealer


(A) non-payment of interest or a tranche of capital on a subordination agreement, as expected; Brokers who are eligible borrowers can apply for a PPP loan. Loans can be used for salary care, including paid sick, physician or family leave, and for the costs of continuing group health benefits during these holidays. [13] Loans can also be used for employee salaries, mortgages or rents, utilities or other eligible obligations. [14] Loans may be granted up to the sum of eligible costs incurred and payments made during the eight-week period from the date the covered loan was built (period covered). [15] The amount of the loan is reduced for any reduction or reduction in employees` salaries. [16] The broker is required to: establish and retain documents relating to the basis of the add-back (including the recording of the calculation of the amount of the effort, the costs and payments that constitute the amount; and an estimate of the possible limits contained in the “Credit Granting” section of the CARES Act (section 1106 (d)) with the underlying basis of such an estimate. 20] The company must also declare the add-focus in its FOCUS back report. [21] (D) Subject to the broker`s or trader`s previous rights as a pawnbroker, the lender may have the right: to direct direct the sale of all security securities contained in the security, to route purchases of securities with the cash they contain, to withdraw surplus assets or to replace cash or other collateral as collateral, provided that the net proceeds of such a sale and the cash thus replaced and the securities thus purchased or replaced are held by the broker or trader as collateral and included in the security; in order to ensure payment of the secured debt bill and, furthermore, where such a transaction is not authorized if, after being provided, the amount of the cash sum, plus the collateral value of the securities which were subsequently hacked as collateral for the secured debt note, would be less than the amount of the unpaid principal of the secured debt note. A. Fidelity Bond Coverage provides limited protection that would not benefit a subordinate lender (investor) under an ALS or NDS in general. In addition, NASD is not aware of any other insurance product that will protect an investor in this situation. When a broker/trader says that an ALS or SDN is covered by any type of insurance, the investor should insist on obtaining that insurance in writing from the insurance company. (D) the audit authority suspends the status of a member of the broker or trader (and does not hand it over within 10 days) or revokes it; There are no restrictions on the broker/trader`s use of a lender`s funds or securities.

A lender cannot impose the use of products from a subordination agreement beyond the additional restrictions contained in Schedule D of the SEC`s net capital rule.