Wat is Prime-brokerage agreement?

A prime-brokerage agreement sets the terms on which a prime broker holds, finances and lends securities to a client: margin (chapter 14’s house margin and any lock-up), the broker’s rights of rehypothecation (Book 1) over the client’s assets, its rights to close out positions and set off amounts on default, and the client’s events of default and termination events, including NAV triggers.