Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What if the value of the stock falls significantly? “What does this default provision in the loan mean?

April 26, 2017Default falls loan mean significantly stock value

0

Posted

What if the value of the stock falls significantly? “What does this default provision in the loan mean?

1 Answer

0

Posted

If the value of stock falls below the agreed minimum value in the contract, then there is an event of default. The minimum value is 80% of the loan amount.