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In this act Article 20 of 42

Article 20 — Treatment of collected initial margins

Financial servicesLevel 2RTSEMIRIn forceOfficial source

20(1)

1.The collecting counterparty shall not rehypothecate, repledge nor otherwise reuse the collateral collected as initial margin.

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20(2)

2.Notwithstanding paragraph 1, a third-party holder may use the initial margin received in cash for reinvestment purposes.

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SECTION 6 — Valuation of collateral