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The Margin Loan Agreement is a crucial document used in Malaysian securities trading and investment activities when investors seek to leverage their existing securities portfolio to obtain financing. This agreement, regulated under Malaysian financial services and securities laws, establishes the legal framework for margin lending facilities, detailing how investors can borrow funds against their securities portfolio while maintaining specified margin ratios. The document addresses key aspects such as facility limits, margin calls, collateral requirements, and enforcement rights, ensuring compliance with Malaysian regulatory requirements including those set by the Securities Commission and Bursa Malaysia. It is particularly relevant in scenarios where sophisticated investors or trading entities seek to expand their investment capabilities through leverage, while providing lenders with security and clear enforcement rights.

1. Parties: Identification of the lender and borrower, including registration details and addresses

2. Background: Context of the agreement, including the borrower's request for margin facility and the lender's agreement to provide it

3. Definitions and Interpretation: Definitions of key terms including Margin Ratio, Collateral, Margin Call, and other technical terms used in the agreement

4. Facility Terms: Details of the margin facility including limit, purpose, and availability period

5. Interest and Fees: Interest calculation method, rates, compounding periods, and applicable fees

6. Margin Requirements: Maintenance margin requirements, margin ratio calculations, and margin call procedures

7. Collateral Arrangements: Requirements for collateral, types of acceptable securities, and valuation methods

8. Representations and Warranties: Standard and specific representations by the borrower regarding their capacity and authority

9. Covenants: Ongoing obligations of the borrower including maintaining margin requirements and providing information

10. Events of Default: Circumstances constituting default and consequences thereof

11. Enforcement Rights: Lender's rights upon default including selling collateral and enforcement procedures

12. Payments and Calculations: Payment mechanics, calculation periods, and payment priorities

13. Communications: Methods and timing of communications, especially for margin calls

14. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and notices