hand corner of the screen. Accordingly, to determine the amount being lent, we divide the notes full price of $1,044,843.75 by 1.02 to obtain $1,024,356.62 which is labeled "SETTLEMENT MONEY" located on the right-hand side of the screen. Suppose the repo rate in this transac- tion is 1.83%. Then, the dealer would agree to deliver the Treasury notes for $1,024,356.62 and repurchase the same securities for $1,024,408.69 the next day. The $52.07 difference between the "sale" price of $1,024,356.62 and the repurchase price of $1,024,408.69 is the dollar interest on the financing. Using a repo rate of 1.83% and a repo term of 1 day, the dollar interest is calculated as shown below:     $1,024,356.62 ´ 0.0183 ´ (1/360) = $52.07   This calculation agrees with repo interest as calculated in the lower right-hand corner of Exhibit 8.2.   Marking the Collateral to Market Another practice to limit credit risk is to mark the collateral to market on a regular basis. Marking a position to market means simply recording the positions value at its market value. When the market value changes by a certain percentage, the repo position is adjusted accordingly. The decline in market value below a specified amount will result in a margin deficit. [Paragraph 4(a) of the Master Repurchase Agreement (reproduced in the appendix) gives the "Seller" (the dealer/borrower in our example) the option to remedy the margin deficit by either providing additional cash or by transferring "additional Securities reasonably acceptable to Buyer." The Buyer in our example is the investor/lender.] Conversely, suppose instead that the market value rises above the amount required by margin. This circumstance results in a margin excess. If this occurs, Paragraph 4(b) states the "Buyer" will remedy the excess by either transferring cash equal to the amount of the excess or returning a portion of the collateral ("purchased securities") to the "Seller." Since the Master Repurchase Agreement covers all transactions where a party is on one side of the transaction, the discussion of margin mainte- nance in Paragraph 4 is couched in terms of "the aggregate Market Value of all Purchased Securities in which a particular party hereto is acting as Buyer" and "the aggregate Buyers Margin Account for all such Transac- tions." Thus, maintenance margin is not viewed from an individual trans- action or security perspective. However, Paragraph 4(f) permits the "Buyer" and "Seller" to agree to override this provision so as to apply the margin maintenance requirement to a single transaction. The price used to mark positions to market is defined in Paragraph 2(j)-the definition of "Market Value." The price is one "obtained from a