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Stock Lending Agreement

This template is a legally binding agreement for the lending and borrowing of stocks between two parties. It is used to formalize the terms and conditions of a stock lending transaction.

Updated 16d ago
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{{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 {{date_of_agreement}} day of {{month}}, {{year}},

BETWEEN:

{{Lender_company_name}}, a company duly incorporated and registered under the laws of {{Lender_jurisdiction}}, with its principal place of business 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 principal place of business 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 INTERPRETATIONS

1.1 In this Agreement, unless the context otherwise requires, the following terms shall have the meanings ascribed to them:

"Collateral" means the assets provided by the Borrower to the Lender to secure the Stock Loan, as described in Schedule A.

"Event of Default" means any event described in Clause 8.

"Loaned Securities" means the specific stocks or shares lent by the Lender to the Borrower, as described in Schedule B.

"Market Value" means the closing price of the Loaned Securities on the {{stock_exchange}} on the relevant business day or as otherwise agreed between the Parties.

"Repurchase Date" means the date on which the Borrower is obligated to return the equivalent securities to the Lender, as specified in Clause 4.

1.2 Clause headings are for convenience only and shall not affect the interpretation of this Agreement. Words importing the singular shall include the plural and vice versa. Words importing any gender shall include all genders.

2. AGREEMENT TO LEND AND BORROW

2.1 The Lender hereby agrees to lend to the Borrower, and the Borrower hereby agrees to borrow from the Lender, the Loaned Securities, in accordance with the terms and conditions of this Agreement.

2.2 The details of the Loaned Securities are set out in Schedule B attached hereto.

3. COLLATERAL

3.1 As security for its obligations under this Agreement, the Borrower shall provide to the Lender, on or before the commencement of the Stock Loan, Collateral with a Market Value equal to at least {{collateral_percentage}}% of the Market Value of the Loaned Securities.

3.2 The Collateral shall be held by the Lender in a segregated account and shall be returned to the Borrower upon the full and satisfactory return of the Loaned Securities.

3.3 The details of the Collateral are set out in Schedule A attached hereto.

4. TERM AND REPURCHASE

4.1 The initial term of this Stock Lending Agreement shall commence on {{start_date}} and shall continue until {{end_date}} (the “Repurchase Date”).

4.2 On the Repurchase Date, the Borrower shall return to the Lender securities identical to the Loaned Securities in quantity and quality, free from all liens, claims, and encumbrances.

4.3 This Agreement may be extended by mutual written agreement of both Parties.

5. FEES AND CHARGES

5.1 In consideration for the Stock Loan, the Borrower shall pay the Lender a lending fee of {{lending_fee_percentage}}% per annum of the Market Value of the Loaned Securities, payable {{payment_frequency}}.

5.2 Any other charges or expenses associated with this Agreement, including but not limited to brokerage fees or transfer taxes, shall be borne by {{party_responsible_for_charges}}.

6. REPRESENTATIONS AND WARRANTIES

6.1 Each Party represents and warrants to the other Party that:

(a) It is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation.

(b) It has the necessary corporate power and authority to enter into and perform its obligations under this Agreement.

(c) The execution and delivery of this Agreement and the performance of its obligations hereunder will not violate any applicable law or regulation or any agreement to which it is a party.

(d) The Loaned Securities are free from any encumbrances, charges, or adverse claims.

7. EVENTS OF DEFAULT

7.1 An Event of Default shall occur if:

(a) The Borrower fails to return the Loaned Securities on the Repurchase Date.

(b) The Borrower fails to provide or maintain the required Collateral.

(c) Either Party breaches any material term or condition of this Agreement and fails to remedy such breach within {{cure_period}} days after receiving written notice thereof.

(d) Either Party becomes insolvent, enters into liquidation, or has a receiver appointed over its assets.

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 arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration in accordance with the rules of the {{arbitration_institution}}.

9. NOTICES

9.1 All notices and communications under this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally, sent by registered mail, or by email to the addresses specified below, or such other address as a Party may designate by notice to the other Party:

If to the Lender: {{Lender_notice_address}}, Email: {{Lender_notice_email}}

If to the Borrower: {{Borrower_notice_address}}, Email: {{Borrower_notice_email}}

10. ENTIRE AGREEMENT

10.1 This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether oral or written.

11. AMENDMENTS

11.1 No amendment, modification, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first above written.

LENDER:

_____________________________

By: {{Lender_authorized_signature}}

Name: {{Lender_signer_name}}

Title: {{Lender_signer_title}}

BORROWER:

_____________________________

By: {{Borrower_authorized_signature}}

Name: {{Borrower_signer_name}}

Title: {{Borrower_signer_title}}

SCHEDULE A: COLLATERAL DETAILS

Description of Collateral:

{{collateral_description}}

Value of Collateral: {{collateral_value}}

Currency: {{currency}}

SCHEDULE B: LOANED SECURITIES DETAILS

Type of Securities: {{type_of_securities}}

Issuer: {{issuer}}

ISIN/Security Code: {{isin_security_code}}

Quantity: {{quantity}}

Market Value per security: {{market_value_per_security}}

Total Market Value: {{total_market_value}}

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