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A securities firm conducting securities business money lending may not accept the securities or other commodities listed below as collateral:
- Pledged securities or other commodities
- new shares not assignable by employees within a given period or new restricted employee shares
- stocks to which company employees elect to apply deferral of income tax payment
- A company's own shares or other equity securities acquired through a buyback of its own shares, donation, merger, transfer of operations, or other reason.
A customer shall warrant that the collateral it provides is free and clear of all liens, claims, and encumbrances of any nature whatsoever; in the event of any defect or legal dispute in this respect, the securities firm may not provide financing.
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