the New York MONEY MARKET a special category of very short-term credit
accommodation for dealers in securities, primarily government securities
dealers and those dealing in over-the-counter securities.
The overnight loan provides credit for such dealers by which to
pay off any day loans, the latter incurred in order to pay for securities
against delivery or to obtain release from pledge of securities in order
to deliver. Overnight loans,
like day loans, are evidenced by specific notes for specific amounts;
but they are fully secured by securities placed in possession of the bank
lender, whereas day loans are secured by lien on securities in the process
of being received or delivered. Also,
overnight loans are subject to maximum loan values and varying interest
rates like other security loans, whereas day loans' rate is fixed and
day loans are not subject to margin requirements.