{{company_name}}
{{company_address}}
Phone: {{phone}} | Email: {{email}} | Web: {{website}}
Stock Lending Agreement
Stock Lending Agreement
{{company_name}}
{{company_address}}
Phone: {{phone}}
Email: {{email}}
Website: {{website}}
STOCK LENDING AGREEMENT
This Stock Lending Agreement (hereinafter referred to as the 'Agreement') is made and entered into on this {{day}} day of {{month}}, {{year}} (the 'Effective Date'),
BETWEEN:
{{lender_company_name}}, a company duly incorporated and registered under the laws of {{lender_jurisdiction}}, with its registered office located at {{lender_address}} (hereinafter referred to as the 'Lender');
AND
{{borrower_company_name}}, a company duly incorporated and registered under the laws of {{borrower_jurisdiction}}, with its registered office located at {{borrower_address}} (hereinafter referred to as the 'Borrower').
The Lender and the Borrower are hereinafter collectively referred to as the 'Parties' and individually as a 'Party'.
1. DEFINITIONS AND INTERPRETATION
1.1. In this Agreement, unless the context otherwise requires, the following terms shall have the meanings ascribed to them below:
'Collateral' means cash, securities, or other assets provided by the Borrower to the Lender to secure the obligations under this Agreement, as specified in Schedule A.
'Lent Securities' means the {{number_of_shares}} ordinary shares of {{issuer_name}} (ISIN: {{isin_number}}) to be lent by the Lender to the Borrower.
'Mark-to-Market' means the process of adjusting the Collateral value to reflect changes in the market value of the Lent Securities.
'Return Date' means the date on which the Borrower is obliged to return the Lent Securities to the Lender, being {{return_date}} unless otherwise agreed in writing.
1.2. Any reference to a 'day' shall mean a business day unless otherwise specified.
2. LENDING OF SECURITIES
2.1. Subject to the terms and conditions of this Agreement, the Lender agrees to lend, and the Borrower agrees to borrow, the Lent Securities.
2.2. The transfer of the Lent Securities from the Lender to the Borrower shall occur on {{transfer_date}}.
2.3. The Borrower acknowledges and agrees that title to the Lent Securities shall pass to the Borrower upon delivery.
3. COLLATERAL
3.1. As security for its obligations hereunder, the Borrower shall provide Collateral to the Lender with an initial market value equal to at least {{initial_collateral_percentage}}% of the market value of the Lent Securities on the Effective Date, amounting to {{initial_collateral_amount}}.
3.2. The Collateral shall be held by the Lender in a segregated account as set out in Schedule A.
3.3. The Parties shall perform a daily Mark-to-Market calculation. If the value of the Collateral falls below {{maintenance_margin_percentage}}% of the value of the Lent Securities, the Borrower shall immediately provide additional Collateral to restore the required ratio. Failure to do so may result in a default.
4. FEES AND CHARGES
4.1. The Borrower shall pay a lending fee to the Lender at a rate of {{lending_fee_percentage}}% per annum of the market value of the Lent Securities, calculated daily and payable {{payment_frequency}}.
4.2. All payments shall be made in {{currency}} to the account specified by the Lender.
5. CORPORATE ACTIONS
5.1. In the event of any corporate action relating to the Lent Securities (e.g., dividends, stock splits, rights issues), the Borrower shall pass through to the Lender any benefits received equivalent to what the Lender would have received had it retained the Lent Securities. The Parties shall agree on the mechanism for such pass-through.
6. RETURN OF LENT SECURITIES
6.1. The Borrower shall return the Lent Securities to the Lender on the Return Date or earlier upon demand by the Lender, provided that such demand allows for a commercially reasonable timeframe for return.
6.2. The returned securities shall be of the same issuer, class, and quantity as the Lent Securities originally borrowed.
7. EVENTS OF DEFAULT
7.1. An Event of Default shall include, but not be limited to, failure to deliver Lent Securities or Collateral, breach of any material term of this Agreement, or insolvency of either Party.
7.2. Upon the occurrence of an Event of Default, the non-defaulting Party may, without prejudice to any other rights or remedies, terminate this Agreement and liquidate any Collateral held to satisfy outstanding obligations.
8. GOVERNING LAW AND DISPUTE RESOLUTION
8.1. This Agreement shall be governed by and construed in accordance with the laws of {{governing_jurisdiction}}.
8.2. Any dispute, controversy or claim arising out of or in connection with this Agreement, or the breach, termination or invalidity thereof, shall be settled by arbitration in accordance with the rules of {{arbitration_institution}}.
9. MISCELLANEOUS
9.1. Entire Agreement: This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, whether written or oral, relating to its subject matter.
9.2. Amendments: No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties.
9.3. Notices: Any notice required or permitted under this Agreement shall be in writing and delivered to the addresses specified herein or as otherwise notified by a Party.
IN WITNESS WHEREOF
The Parties have executed this Stock Lending Agreement on the Effective Date first written above.
FOR THE LENDER:
_____________________________
Name: {{lender_signatory_name}}
Title: {{lender_signatory_title}}
FOR THE BORROWER:
_____________________________
Name: {{borrower_signatory_name}}
Title: {{borrower_signatory_title}}
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