If the price of the securities pledged to the ECB falls below a predetermined limit, the borrower must reinforce the deposit with additional securities. – Particularly in the case of credit cooperatives in Germany, the obligation of members to pay a further amount to the cooperative to compensate for any losses, in addition to the deposit they have made. As a rule, according to the articles of association, the obligation to make additional contributions is limited in its amount to the contribution. – See abandonment, cash settlement, cash margin, margin, margin call, margin call, repurchase agreement, variation margin, margin of safety, sukuk, underlying, underlay, grant, additional payment.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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