CmaBylaw
Executive Bylaws
9-4 Of Module Eleven: Dealing in Securities
Section: Chapter Nine: Pledge of Securities
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Tuesday, 14 February 2017
A pledge agreement shall include the following: 1. Amount of debt secured by the pledge. 2. Whether the pledge secures the fulfilment of a debt and the returns on the debt or not and in the event that no such provision is included in the contract it shall be deemed that the pledge covers the debt and returns thereof. 3. Whether the debtor acquired a certain amount or not. 4. Whether a specific bank account is allocated for all the transactions related to the debt secured by the pledge. Such accounts are deemed reasonable evidence of the payment of the debt amount to the debtor and the debtor’s repayments or such evidence shall be based on the bank’s periodical ratification of the balance of the debt. 5. Whether the mortgage includes the returns of the pledged Securities or not and if the pledge agreement does not have such provision the pledge shall be deemed to include the returns of the pledged Securities. 6. Whether the pledgee assigns its voting rights or not. 7. Default events, upon which a debt is due prior to its maturity date as stated in the agreement. 8. Whether the pledgor agrees that the creditor pledgee shall acquire the ownership of Securities, the sale of Securities in the event that the debtor fails to fulfil its contractual obligations and the method of determining the ownership or sale price. 9. Procedures of notice of events of default upon their occurrence and the evidence of their occurrence in accordance with the agreement.
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