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Article 21
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If customer's account collateral maintenance ratio falls below 105%, the securities firm shall notify the customer to remargin the lending deals that have fallen short of the required margin level back to the initial maintenance ratio within 2 business days after the notice is served.
If the customer does not remargin to the required level within 2 business days after being notified, the securities firm shall proceed with the following:
- If the customer's account collateral maintenance ratio still falls short of the required maintenance ratio, the securities firm may proceed to dispose the customer's collaterals in accordance with Article 25, Paragraph 1 on the next business day.
- If the customer's account collateral maintenance ratio rises back above the required maintenance ratio, the disposal of collateral can be postponed temporarily. However, if the collateral maintenance ratio falls short again the next business day and the customer does not remargin by the end of the day, the securities firm may proceed to dispose the customer's collaterals in accordance with Article 25, Paragraph 1 on the next business day.
- If the customer remargins up to the level notified before collaterals are disposed, the securities firm shall purge all records of margins called for this instance.
- Customers whose account collateral maintenance ratios have risen back to the initial maintenance ratio or above shall be purged of all margin call records for this instance.
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