Financial securities

Pursuant to Article 1, Paragraph 17 of the German Banking Act, “cash balances, sums of money, securities, money market instruments, and other promissory notes, including any rights or claims associated therewith, which are provided as collateral in the form of a limited security interest in rem or by way of a full transfer of rights on the basis of an agreement between a collateral taker and a collateral provider belonging to one of the categories listed in Article 1, Paragraphs. 2(a) to (e) of Directive 2002/47/EC of the European Parliament and of the Council of June 6, 2002 on financial collateral arrangements (OJ EC No. L 168 p. 43).” – Under IFRS, “a contract whereby the issuer of the security undertakes to pay to the investor that lends the money today, a stream of cash flows in accordance with a given timetable.” – See the referenced legal source for further details on the definition of the term. – See covenant, real estate collateral, IRB approach, central bank eligibility, rating, repo market, collateral.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/