On the Commencement of the Loan

>

Status: Under Review, Last Updated: 07/08/2020

**
Typically a collateral giver will undertake to deliver to, or deposit, collateral prior to close-of-business on an agreed date in order to cover any new loan. That agreed date may be the loan settlement date or prior date depending on type or location of the loan security.

If a collateral fails to be delivered, counterparts may agree to the provision of alternative collateral within standard market deadlines, dependant on the type of collateral.

If market deadlines for securities collateral are passed, parties should avoid any overnight exposure by holding back settlement of new loans. (IBP-193)