| Investor A | Investor B | |
|---|---|---|
| Pledged amount | $200,000 | $1,000,000 |
| Borrowed | $170,000 | $170,000 |
| Pledged amountafter 30% portfolio loss | $140,000 | $700,000 |
| Bank demand to replenish pledged assets | $30,000 | $ - |
Disclosure Title
Source
Disclosure
SCFR. For illustrative purposes only. Individual situations will vary. Hypothetical scenario where the bank demand for additional collateral is based on meeting the minimum requirement that the pledged amount exceeds the outstanding loan amount. The bank at any time could sell the assets to satisfy the loan obligation.