Cash Collateral Research Articles

Tanggung Jawab Penjamin dalam Penanguhan atau Pengalihan Penahanan Tersangka atau Terdakwa

The provisions of Article 1 point 21 of the Criminal Procedure Code state that detention is the placement of a suspect/defendant in a certain place by an investigator, public prosecutor or judge with his or her determination and in a regulated manner. in this law. Detention is the placement of a suspect/defendant in a certain place by an investigator, public prosecutor, or judge with his or her determination, with the conditions and methods regulated in this law. Therefore, detention is a form of deprivation of a person's freedom of movement and is a threat aimed at giving a feeling of regret to someone who has committed an offense. Detained suspects/defendants have several rights, one of which is the right to submit a request for suspension or the right to transfer detention. According to the provisions of Article 31 of the Criminal Procedure Code, a suspension of detention can be granted by investigators, public prosecutors or judges in accordance with their respective authorities with or without cash collateral or personal guarantees, based on predetermined conditions. The purpose of this research is to determine the responsibility of the guarantor if a suspect or accused who is detained or transferred to detention escapes. The research method uses normative juridical with a statutory and conceptual approach. The result of this research is that a suspension of detention can be granted by the police investigator as the detention institution, if the suspect/accused or guarantor has fulfilled the conditions that have been set. However, during the suspension of detention, the suspect/defendant escapes and is not found within a period of 3 (three) months, then (the guarantor) is responsible for bearing all risks and consequences that arise, namely by depositing the security deposit. in the amount specified in the agreement at the beginning. granting suspension of detention

Doing well while doing good? Gender effects in pro-social peer-to-peer lending

PurposeThe 2008 and 2020 crises reinvigorated discussions on the need to deepen financial inclusion through fintech. Peer-to-peer (P2P) lending facilitates pro-social direct lending to less “bankable” strangers while providing returns to at-times less experienced lenders. Information asymmetries and credit risk are substantial, and previous research finds suboptimal heuristics in for-profit lenders (Gonzalez, 2022). This study examines further the role of gender to facilitate “doing well while doing good”.Design/methodology/approachThis study examines 663 pro-social lending decisions by finance students on a mock P2P site. Testimonials were used to condition participants towards pro-social decision-making. Each participant was asked to make three lending decisions. The three loan applications were identical except for a female or male headshot (vs a control icon), and a randomly assigned difference in the trustworthiness or popularity of the male vs female loan applications among other lenders. Loan popularity is reported as a lower number of days needed to fund half the identical loan amount requested in the three loan applications (3 vs 11 days for headshot applications, and 7 days for control one).FindingsSelf-recognition in similar-age borrowers is more pronounced for lenders who have experienced financial trauma. Second, male lenders report higher confidence in their financial literacy and cash collateral. Third, cash collateral increases lending only to female borrowers. Fourth, higher perception of one's financial literacy increases confidence only when lending to females.Originality/valueThis is the first study to examine the role of gender, financial literacy, identification with borrowers, and collateral perception in pro-social P2P lending.

ДИСКРЕЦІЙНІ ПОВНОВАЖЕННЯ У СПОРАХ ПРО СТЯГНЕННЯ ІНДЕКСАЦІЇ ГРОШОВОГО ЗАБЕЗПЕЧЕННЯ ВІЙСЬКОВОСЛУЖБОВЦІВ

The article is devoted to the analysis of the issue of resolving in court disputes on the obligation of military units to accrue and pay the indexation of monetary security with an indication of the base month, which is taken into account for the relevant accruals. It is found that the servicemen were deprived of the right to effective judicial protection in connection with the attribution of the calculation of the indexation of monetary support to the competence of the military unit as the body in which the plaintiff served and paid him/her monetary support. The provisions of the national legislation on the indexation of monetary incomes of the population and the procedure for its accrual, which provides for mandatory rules for the selection of the base month for the accrual of indexation of monetary security, are studied. Scientific approaches to understanding the concept of «discretionary powers» as powers granted to public authorities and local governments in the process of performing managerial functions, which provide for the possibility of choosing the appropriate subjects of several possible behaviors. The decision of the courts to refuse to satisfy the claim for recovery of the indexation of monetary security with an indication of the base month, on the grounds of assigning such a prerogative to the discretionary powers of the military unit, is critically analyzed. Based on the findings of a scientific doctrine, as well as the legal positions of the European Court of Human Rights, the Supreme Court in the interpretation of the meaning of «discretionary powers» concluded that the military unit is not obliged to calculate and pay indexation of monetary security. The main arguments in favor of this position are the following: the existence of a norm of law that contains an indication of the base month, which must be taken into account when calculating the indexation of cash collateral; acquisition by the military unit of the legal status of an «employer», and not a «state body», which performs managerial functions in the relations that arise in connection with the collection of indexation of monetary security. In general, the judiciary should develop a unified approach to resolving disputes on the recovery of monetary security indexation, which provides for the obligation of the defendant to accrue and pay the indexation of monetary security taking into account the specific base month specified by law. This approach, according to the author, will ensure on the one hand the efficiency and timeliness of restoring the right of servicemen to decent pay, and on the other – will reduce the burden on the judiciary, as a person will not need to go to court again.

THE ORETICAL AND LEGAL ASPECTS OF APPLICATION OF FINANCIAL GUARANTEES FOR TRANSIT FOREIGN ECONOMIC OPERATIONS

The article substantiates the need to use methods to ensure payment of customs duties, including financial guarantees. It is proved that financial guarantees are a method of ensuring the fulfillment of customs obligations in violation of the conditions for granting tax exemptions, including in the customs regime of «transit». The volumes of transit through the customs territory of Ukraine from the EU countries for 2014-2020 are analyzed. The essence and signs of transit foreign economic operations are determined. Cases are described in which transit will be considered as interrupted transit (hidden import). Statistical data are presented, which show that a significant share of transit operations are recognized by the customs authorities of Ukraine as interrupted transit. The volumes of provided financial guarantees are investigated. The tasks performed by ensuring the payment of customs duties through the use of financial guarantees under the customs regime of transit have been established. The types and forms of financial guarantees are determined depending on the method of movement of goods and commercial vehicles in the customs regime «transit» (transit, internal transit, joint transit, cabotage transit). The monetary pledge is described, as well as the guarantee document in written or electronic form. The peculiarities of the use of cash collateral are outlined. The order of registration of the documents provided at application of financial guarantees on transit foreign economic operations is opened. The conditions for providing financial guarantees by type (individual, multiple, general) are clarified. The cases in which the Customer is sent a request for payment of customs duties are described. There are formulas for calculating customs debt and penalties in case of non-payment of customs duties by the guarantor. The latest changes in the legal field that have a positiv

The legal nature of reforming the modern electoral system of Ukraine: advantages and disadvantages

This article reveals the content of the main transformation processes that have taken place in recent years in the electoral process of Ukraine, including the abolition of "self-nomination" of candidates, abolition of mixed electoral system in parliamentary elections, study of the legal nature of the "single permanent vote". , regulation of the issue of cash collateral, delimitation of the concepts of "registered place of residence" and "actual place of residence", limitation of election funds for candidates for President of Ukraine, etc. Changes in the sphere of presidential, parliamentary and local self-government elections are outlined. The main preconditions for the development and adoption of the Electoral Code of Ukraine and its role for the further functioning of electoral law mechanisms are indicated.
 The result of the consolidation of all normative legal acts regulating election procedures in Ukraine into a single codified legislative act in order to unify the regulation of the preparation and conduct of elections in Ukraine is analyzed.
 The main directions of further development and improvement of the election legislation of Ukraine are studied, including: introduction of an effective system of legal liability for violation of election legislation, proper determination of sanctions for violation of citizens' election rights, assistance in increasing the personnel potential of election commission members and quality control. and integrity of the Central Election Commission, prohibition of amendments to the main provisions of the election law in the period of one year before the election process, regulation of election campaigning on social networks, elimination of problems in the field of transparency of election campaign financing, inclusion of relevant data in the voter list. to it, information and educational campaigns for voters, etc.
 The adoption of the Electoral Code of Ukraine has laid a solid foundation for a transparent, democratic and effective electoral process, following the basic principles and ideas of European integration policy and the policy of developed countries.

The legal nature of reforming the modern electoral system of Ukraine: advantages and disadvantages

This article reveals the content of the main transformation processes that have taken place in recent years in the electoral process of Ukraine, including the abolition of «self-nomination» of candidates, abolition of mixed electoral system in parliamentary elections, study of the legal nature of the «single permanent vote». , regulation of the issue of cash collateral, delimitation of the concepts of «registered place of residence» and «actual place of residence», limita¬tion of election funds for candidates for President of Ukraine, etc. Changes in the sphere of presidential, parliamentary and local self-government elections are outlined. The main preconditions for the development and adoption of the Electoral Code of Ukraine and its role for the further functioning of electoral law mechanisms are indicated.The result of the consolidation of all normative legal acts regulating election procedures in Ukraine into a single codified legislative act in order to unify the regulation of the preparation and conduct of elections in Ukraine is analyzed.The main directions of further development and improvement of the election legislation of Ukraine are studied, including: introduction of an effective system of legal liability for violation of election legislation, proper determina¬tion of sanctions for violation of citizens’ election rights, assistance in increasing the personnel potential of election commission members and quality control. and integrity of the Central Election Commission, prohibition of amend¬ments to the main provisions of the election law in the period of one year before the election process, regulation of election campaigning on social networks, elimination of problems in the field of transparency of election campaign financing, inclusion of relevant data in the voter list. to it, information and educational campaigns for voters, etc.
 The adoption of the Electoral Code of Ukraine has laid a solid foundation for a transparent, democratic and ef-fective electoral process, following the basic principles and ideas of European integration policy and the policy of developed countries.

Cash Collateral, Creditor Rights, and the Provision of Trade Credit

How does access to debt markets affect firms' provision of trade credit? Existing literature focuses on the effect of financial crises and shows that access to bank loans allows firms to provide more trade credit. However, outside of crises, increased access to debt could strengthen a firm’s product market power and reduce the need for them to provide trade credit to major customers. We test this conjecture by exploiting the staggered passage of anti-recharacterization laws as exogenous shocks to firms' access to debt markets and using hand-collected data on the amount of trade credit provided by U.S. public firms to their individual customers. We show that better access to debt reduces firms' extension of trade credit to their major customers, particularly for financially healthy customers with top credit ratings. Consistent with the argument of product market power, we find that firms affected by the laws expand their customer base and deepen relations with riskier customers. The law-induced decline in trade credit leads to reductions in investment and increased borrowing by customer firms. It also leads those customer firms to provide less trade credit to firms further downstream.

Supplemental Pay for Cash Collateral of Police Officers during Quarantine: Administrative Discretion of Authorized Officials on Deciding about Its Payment

The author has researched the norms of positive law, which contain instructions on the establishment and payment of supplemental pay to the cash collateral during quarantine for police officers. A comprehensive, complete and objective study of legal basis for the supplemental pay to the cash collateral of police officers during quarantine is impossible without understanding the law enforcement practices and interpretation used by authorized officials when deciding whether or not to make the supplemental pay to the cash collateral of police officers. The normatively determined grounds for the supplemental pay and the actual substantiation of the application of such payments for police officers have been analyzed. Objectivity and completeness are impossible without analyzing all the arguments, including those voiced by the representatives of the administration of the territorial agencies of the National Police, as legal entities of public law. It has been emphasized that the administrative discretion of authorized officials should embody the principles of the rule of law, respect for human rights and freedoms, and should not pursue the realization of economic private interests, including the interests of subjects of authoritative powers. Restrictions on the application of the supplemental pay to the cash collateral of police officers during quarantine are the direct restriction of the social rights of representatives of a particular profession – police officers. The legal position for protecting the social right of police officers for the supplemental pay, as well as the affiliation of this right to each police officer has been defended.
 At the same time, the legal position on the need for the supplemental pay for all police officers has been additionally substantiated, based on the tasks facing the National Police and the provision of police services to the population.
 The author has argued the legal position of the completeness of social rights of police officers during quarantine, which are impossible without appropriate the supplemental pay to the cash collateral of police officers during quarantine.

ОСОБЛИВОСТІ ВИЗНАЧЕННЯ РОЗМІРУ ІНДЕКСАЦІЇ ГРОШОВОГО ЗАБЕЗПЕЧЕННЯ ВІЙСЬКОВОСЛУЖБОВЦІВ ПІД ЧАС ПРОВЕДЕННЯ СУДОВИХ ЕКОНОМІЧНИХ ЕКСПЕРТИЗ

The article considers the concept of indexation of cash collateral, its justification and the obligation to accrue and pay. Indexation is a component of the financial security of servicemen and one of the main state guarantees. That is why it is subject to mandatory accrual and payment. According to the current legislation, the indexation of monetary income of the population is carried out when the value of the consumer price index exceeds the indexation threshold, which is set at 103 percent. The calculation of the consumer price index for the indexation of monetary income of the population is a cumulative result. To further index the monetary income of the population, the calculation of the consumer price index begins in the month in which the consumer price index exceeded the indexation threshold. The increase in monetary income of the population in connection with the indexation is carried out from the first day of the month following the month in which the consumer price index is published. Equally important is the correctness of the indexation, which in turn depends on the correctness of the base month. Resolution of the Cabinet of Ministers of Ukraine of December 9, 2015 № 1013 amended the Procedure for indexation of monetary income of the population. Therefore, the calculation of the consumer price index for indexation since January 2016 was carried out not individually for each employee, depending on the date of his employment (position), but from the date of the last revision of the tariff rate (salary) for the position held by the employee. Based on the norms prescribed in the Procedure for indexation of monetary incomes of the population, the month in which the tariff rates (salaries) were increased became the base for the indexation. Recently, there has been a situation with non-accruals and non-payment of indexation of cash benefits to servicemen of the Armed Forces of Ukraine, the National Guard of Ukraine, the State Border Guard Service of Ukraine for the period 2016–2018, which contradicts current legislation. As a result, the number of decisions of judges and applications of servicemen to conduct forensic economic examinations in order to document and determine the amounts of non-accrued or not fully accrued by military units indexation of monetary support has increased. Recently, there has been a situation with non-accruals and non-payment of indexation of cash benefits to servicemen of the Armed Forces of Ukraine, the National Guard of Ukraine, the State Border Guard Service of Ukraine for the period 2016–2018, which contradicts current legislation. In this regard, the number of decisions of judges and applications of servicemen to conduct forensic economic examinations in order to document and determine the amounts of unaccrued or incompletely accrued by military units indexation of monetary support has increased.

ЮРИДИЧНИЙ АСПЕКТ ВИПЛАТИ СЕРЕДНЬОГО РОЗМІРУ ГРОШОВОГО ЗАБЕЗПЕЧЕННЯ ВІЙСЬКОВОСЛУЖБОВЦЯМ НА ПІДСТАВІ РІШЕННЯ СУДУ

The article analyzes the problematic issues regarding the payment of cash benefits to servicemen in case of violation of the term of obligatory social benefits upon dismissal. It is determined that during 2018–2020 there is a practice of applying the norms of labor legislation of Ukraine to recover from the military units of the Armed Forces of Ukraine the average amount of cash during the delay of full payment of a serviceman upon discharge from military service. It is noted that this state of affairs puts excessive financial pressure on the state defense budget, and therefore it is necessary to clarify the legitimacy of the application of labor legislation to servicemen in terms of payment of the average amount of cash for the delay in discharge from military service. It is substantiated that the norms of special legislation have an exclusive advantage over the norms of labor legislation in resolving disputes concerning the full calculation of servicemen upon discharge from military service. Emphasis is placed on the fact that the practice of the European Court of Human Rights regarding the payment of average earnings to individual citizens of Ukraine during the delay in payment upon dismissal is ambiguous. It was found that at the regulatory level there is no procedure for calculating the average amount of cash collateral. It is noted that the application of the analogy of the procedure for calculating the average salary of employees is technically impossible given that the structure of monetary support of servicemen and its economic essence is different from the structure and nature of wages. It is proposed as a direction of further research to develop a compromise mechanism in the system of special legislation to strengthen the responsibility of officials of military units of the Armed Forces of Ukraine for late and incomplete payment of servicemen upon discharge from military service.

A Derivatives Pricing Model with Non-Cash Collateralization

This article proposes a derivatives pricing model with both cash and a non-cash asset posted as collateral for a derivatives contract. We assume that the participant sources funds from the repo market for the posted non-cash collateral. Our pricing formula is based on the investment of the received collaterals. For the pricing formula, we discount the future derivatives value using a combination of the collateral and repo rates under a risk-neutral measure. Thus, our pricing model constructs a multi-curve framework. We calibrate our pricing model for JPY interest rate derivatives and then show that our model with non-cash collateralization is closer to the real price than the existing pricing formulae (i.e., the cash collateralization and simple short rate models). <b>TOPICS:</b>Derivatives, interest-rate and currency swaps, quantitative methods, statistical methods, risk management, credit risk management <b>Key Findings</b> ▪ A derivatives pricing model when cash and a non-cash asset are posted as collateral is proposed. The non-cash collateral receiver exchanges the posted collateral for cash in the repo market. ▪ Under this framework, the discount rate in the resulting pricing formula is given as the weighted average of the collateral and repo rates weighted with the amount of the cash collateral. ▪ The accuracy of the proposed pricing formula is superior to the pricing formula with the OIS discount that has been common after the financial crisis in 2008.

Securities Lending and Corporate Financing: Evidence from Bond Issuance

The securities lending market allows institutional investors, such as insurance companies, to lend out asset holdings in exchange for cash collateral, an important but understudied source of funding. Since securities lenders are also primary investors in corporate bonds, we hypothesize that their lending preference for certain types of bonds can influence corporate financing policies. Indeed, we observe that a higher lender preference for long-term bonds stimulates firms to issue more such bonds and helps boost bond prices. The analysis exploiting a quasi-experiment supports a causal interpretation. Our results shed new light on the potential impact of securities lending.

The Australian PPSA from a Canadian Perspective: Some Comparative Reflections

The Australian Personal Property Securities Act 2009 (Cth) is based in part on the Saskatchewan Personal Property Security Act, but it departs from the Saskatchewan model in numerous significant respects in terms of both drafting and substance. The differences fall into three main categories: (1) drafting differences; (2) substantive differences which are the result of mistakes on the part of the Australian law makers; and (3) substantive differences which reflect deliberate policy choices. For the most part, matters falling within categories (1) and (2) are unlikely to interest a Canadian observer, but matters falling within category (3) transcend the purely parochial and there is clearly room for an international dialogue at this level. This article focuses on selected aspects of the Australian PPSA, comparing them with the Canadian position and evaluating the alternatives. The article also addresses relevant aspects of Article 9 of the United States Uniform Commercial Code. The topics covered are as follows: (1) the Australian federal government’s take-over of the PPSA legislative agenda; (2) the Australian PPSA’s approach to security interests in cash collateral as compared with the Canadian approach; and (3) selected registration issues.

Designing optimal jet fuel hedging strategies for airlines – Why hedging will not always reduce risk exposure

Using a historical simulation based Value at Risk (VaR) model, we provide the first empirical study quantifying the benefits and the costs associated with the fuel hedging activities of airlines. More specifically, we quantify the jet fuel risk exposure and estimate the cash collateral required to support jet fuel hedging using exchange traded futures. The results from our VaR model suggest that although hedging significantly reduces risk exposure, the associated collateral costs are large enough to offset, to a large extent, the potential financial benefits of the hedge to airlines. Increasing the hedging ratio beyond 60–70% results in a marginal reduction in the market risk exposure but significantly increases the cash collateral requirements. Our results demonstrate that the amount of cash collateral is a key factor in hedging decisions of airlines and, while this somewhat contradicts extant literature, is consistent with recent management practice.

Penanganan Pembiayaan Murabahah Macet Pada Koperasi Pondok Pesantren (KOPONTREN) XYZ

Murabaha Financing have potentially lower risk than other financing product. It chosen by USP Kopontren XYZ to fulfill members financing demand both for business development and consumptive purposes. Termination of Employment Relationship, working cycle and Bad characters some members cause of the collectibility default in Murabaha Financing.This study using qualitative approach and case studies. The collection of primarydata through in-depth interview, while secondary data obtained from the AnnualMembers Meeting report Kopontren XYZ . Explanation building analysis techniques are use to explain the results of in-depth interviews in order to explain the handling of murabaha financing collectibility default.The results explained to handling collectability default adopt according to The Minister of Cooperatives and Small and Medium Enterprises of the Republic of Indonesia Number: 35.3 / Per / M.KUKM / X / 2007, executing from cash collateral, financial penalties for those who deliberately, and converts the contract.

Securities Lending as Wholesale Funding: Evidence from the U.S. Life Insurance Industry

The existing literature implicitly or explicitly assumes that securities lenders primarily respond to demand from borrowers and reinvest their cash collateral through short-term markets. Using a new dataset that matches every U.S. life insurer’s bond portfolio, as well as their lending and reinvestment decisions, to the universe of securities lending transactions, we offer compelling evidence for an alternative strategy, in which securities lending programs are used to finance a portfolio of long-dated assets. We discuss how the liquidity and maturity mismatch associated with using securities lending as a source of wholesale funding could potentially impair the functioning of the securities market.

Performance Analysis of Options-Based Equity Mutual Funds, Closed-End Funds, and Exchange-Traded Funds

Mutual fund managers may implement a variety of trading strategies using exchange-traded equity and equity index options. These strategies predominately include covered calls, wherein call options are sold against long positions, and put writes, wherein put options are sold against cash collateral. Previously, the literature has documented superior risk-adjusted performance of mechanical index strategies, such as the Chicago Board Options Exchange (CBOE) S&P 500 Buy-Write Index (BXM) and the CBOE S&P 500 Put-Write Index (PUT). This study documents strong risk-adjusted performance of a large sample of listed funds, which earned similar returns to the S&P 500 Index from 2000 through 2014, with substantially less risk as measured by standard deviation or beta. While the performance of the BXM is stated before fees, the sample of options-based funds outperformed BXM after fees over the sample period.

XVA of a Derivative on an Underlying Modelled by a Default Jump Process with an Analysis of CVA Wrong Way Risk for Bond Forwards

We consider the valuation and risk management of derivatives on defaultable assets such as bonds taking into account funding (FVA), cash collateral, underlying default, counterparty default (CVA) and default correlation using joint default poisson process. The framework can be considered as an extension of the Black Scholes FVA/CVA framework of Bugard and Kjaer. The results are applied to bond forward contracts and total return swaps with early termination at underlying default.

State Contract Law and Debt Contracting

This paper examines the relationship between debt contracts and state contract law. We first develop an index to evaluate whether each state's law is favorable or unfavorable to lenders. We then analyze how the contract terms, the frequency of covenant violations, and the repercussions of covenant violations vary across states. We find that cash collateral is most likely to be used when the contract is governed by law that is favorable to debtors, and that out-of-state borrowers who use favorable law pay higher yield spreads. Additionally, when the law is favorable to lenders, there are significantly fewer covenant violations and the repercussions of covenant violations --- measured as changes in the borrower's investment policy --- are more severe. We also compare the characteristics of relevant parties across states, and the results provide support for the theory that there is a market for contracts similar to the market for incorporations.

Securities Lending as Wholesale Funding: Evidence from the U.S. Life Insurance Industry

The existing literature assumes that securities lenders primarily respond to demand from securities borrowers and reinvest their cash collateral in short-term markets. We offer compelling evidence for a supply channel, using new data matching U.S. life insurers’ individual bond lending and reinvestment decisions to the universe of securities lending transactions. We show that an insurer’s decision to lend a bond is positively correlated with liquidity transformation in its lending program, even after controlling for demand for that bond. We discuss how using securities lending cash collateral as a source of wholesale funding might impair securities markets in times of stress.