Common use of Hypothecation of Customer Securities Clause in Contracts

Hypothecation of Customer Securities. First Clearing shall maintain possession and control of Broker’s customer funds and securities in accordance with the broker-dealer financial responsibility rules promulgated under the SEA and other applicable laws, rules or regulations. Within limitations imposed by applicable laws, rules and regulations, securities and other property in Broker’s customer and proprietary accounts (which does not include fully-paid for customer securities) may be pledged, hypothecated, lent, sold (including through repurchase agreements) or otherwise transferred by First Clearing from time to time, without notice to Broker. First Clearing may do so without retaining in its possession or under its control for delivery a like amount of similar securities or other property.