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One of the members in our club has about $ 7000 in the club. He wants to borrow (and not to withdraw) about $ 5000 to cover his margin in a brokrage account. He is promising to return the money within a month. He will pay whatever margin interest we have to pay to get this money. Rather than selling some stock, we can borrow on margin from Club's borkergae account. My questions are -

1. We are allowing this to happen as an exception but is this practice common with investment clubs ?

2. How to handle it from accounting point of view ?

Any feedback on this is greatly appreciated.

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