New issue loan master agreement
This agreement is between a lender and an Investment Dealer Member for a loan facility that is based on an underwriting. The loan facility is in the form of a new issue letter and the lender agrees to provide an irrevocable commitment to advance funds based only on the strength of the new issue and the Investment Dealer Member. This agreement does not allow set off. IDPC Rule 5500, Margin requirements for underwriting commitments and when issued trading, sets margin and capital requirements for an Investment Dealer Member that is involved in an underwriting commitment and these requirements are lower when there is a new issue letter for the underwriting commitment.