What is the 'Depository Trust Company - DTC'. The Depository Trust Company (DTC) is one of the world's largest securities depositories. The DTC, which was founded in 1973 and is based in New York City, is organized as a limited purpose trust company and provides safekeeping through electronic recordkeeping of securities balances.
To be prepetition property, the security interest must attach to the property. A security interest attaches to personal property upon satisfaction of three requirements: (1) the parties have an adequate security agreement, (2) the secured party gives value, and (3) the debtor has rights or the power to transfer rights in the personal property.
The SPO charge serves to keep the amount of collateral held by the lender equal to the value of the securities held by the borrower. The SPO charge occurs in one of two ways, depending on whether the value of the borrowed securities rises or falls. If the value of the securities falls, the agent initiates an SPO charge against the lender that transfers cash from the lenderâs account back to the borrower. If the value rises, the agent initiates a charge against the borrower that transfers cash to the lender to bring the borrowerâs collateral equal to the securities value.