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A case which ruled that: where a securities company notifies a client who has entered into a margin transaction agreement, on occurrence of a deficiency in the collateral and the scheduled date for the liquidation to cover such deficiency, the client may deposit the requested additional amount for each date within 4 business days from the date of such request in accordance with the Regulations on Credit Extension by Securities Companies, and the securities company may not execute the liquidation transaction so long as the 4-day grace period has not lapsed on grounds that the client did comply with the requirement to deposit the additional collateral; if the due date for payment designated by the securities company in relation to its request for additional collateral is unreasonable, the right of the securities company to execute the liquidation transaction vests only upon lapse of the reasonable period (4 business days from the date of the request); if a change in the price of the collateral stock occurs between the date of the request and the date of the liquidation transaction, the number of stocks that the securities company may liquidate should be determined by taking into account the collateral ratio as of the close of market on the trading day immediately preceding the liquidation date, and by reflecting the change in the stock price.
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