Law Firm Cheongchul (Attorney in charge: Lee Young-kyung, Bae Gi-hyung) represents a securities company regarding the failure of the debtor company to comply with the obligation to maintain the collateral ratio after purchasing shares through a securities collateral loan agreement, which resulted in outstanding loans related to the securities company's receivables. The real estate of the debtor company has been provisionally seized to secure the loans due to the securities company.

When securities collateral loans are conducted between a securities company and a customer, an obligation to maintain the 'collateral ratio' is imposed on the customer. The collateral maintenance ratio refers to the rate that is established to keep collateral at a significant level to guard against declines in stock prices when borrowing money from a securities firm with stocks as collateral. Although the debtor company purchased shares through a securities collateral loan agreement with the securities company, it failed to maintain the collateral ratio, resulting in the occurrence of outstanding loan receivables, which necessitated precautionary measures.

Therefore, Cheongchul represented the securities company to explain the securities collateral loan transaction and the collateral maintenance ratio in court, and successfully obtained a provisional seizure decision from the court by explaining the necessity of preservation.

The above matters may be frequently encountered in transactions between the securities company and clients, but from the perspective of the court, which handles numerous cases, it is necessary for transactions occurring between the securities company and the client to be understood through detailed materials and explanations, and in this case, Cheongchul’s detailed explanation allowed for the provisional seizure to secure the creditor's claim.

Law Firm Cheongchul is ready to perform your business with lawyers who have experience in securities company operations and financial regulations at large law firms, and currently handles numerous securities company business.

If you have any questions related to matters concerning the securities company, please do not hesitate to contact Cheongchul.