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Stock Loan Agreement Template for Switzerland

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Key Requirements PROMPT example:

Stock Loan Agreement

"I need a Stock Loan Agreement under Swiss law for a bilateral arrangement between our bank and a major pension fund, with specific provisions for managing ESG-compliant securities and including agency lending capabilities."

Document background
The Stock Loan Agreement serves as the primary contractual framework for securities lending transactions in the Swiss market. It is essential for financial institutions, investment managers, and other market participants engaging in securities lending activities under Swiss jurisdiction. The agreement is designed to comply with Swiss financial regulations, particularly the Federal Act on Financial Market Infrastructures (FinfraG) and FINMA requirements, while incorporating international best practices. It establishes the legal basis for the temporary transfer of securities, collateral arrangements, rights and obligations of parties, and risk management procedures. This document is crucial for entities seeking to participate in Switzerland's sophisticated securities lending market, whether as lenders or borrowers, and includes specific provisions addressing Swiss legal requirements for financial contracts, custody arrangements, and default scenarios.
Suggested Sections

1. Parties: Identification of the lender and borrower, including their registration details and addresses

2. Background: Context of the agreement and brief description of the stock lending arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and interpretation rules

4. Loans of Securities: Core provisions governing the lending of securities, including loan mechanics and procedures

5. Delivery and Redelivery: Process and timing for delivering loaned securities and their return

6. Collateral Requirements: Provisions regarding posting, maintaining, and returning collateral

7. Income Payments and Corporate Actions: Treatment of dividends, rights issues, and other corporate actions

8. Rates and Fees: Lending fees, interest rates, and payment mechanics

9. Tax Provisions: Treatment of taxes, including withholding tax and manufactured payments

10. Representations and Warranties: Standard and specific representations and warranties of each party

11. Events of Default: Definition of events of default and their consequences

12. Close-out and Set-off: Procedures for termination and settling outstanding obligations

13. Governing Law and Jurisdiction: Specification of Swiss law as governing law and jurisdiction provisions

Optional Sections

1. Agency Provisions: Required when either party acts as agent for underlying principals

2. Custody Arrangements: Needed when specific custody arrangements are required for securities or collateral

3. Market Disruption: Provisions dealing with market disruption events, included for more sophisticated agreements

4. Electronic Trading Platform: Required when loans will be executed through specific trading platforms

5. Margin Maintenance: Detailed margin maintenance provisions for more complex collateral arrangements

6. Non-Standard Settlement: Required for agreements involving non-standard settlement cycles or markets

Suggested Schedules

1. Schedule 1 - Form of Loan Confirmation: Standard form for confirming individual loan transactions

2. Schedule 2 - Eligible Securities: List of securities eligible for lending under the agreement

3. Schedule 3 - Eligible Collateral: Types of acceptable collateral and applicable haircuts

4. Schedule 4 - Agency Terms: Detailed terms applicable to agency lending arrangements

5. Schedule 5 - Contact Details: Contact information for notices and operational matters

6. Schedule 6 - Fee Schedule: Detailed breakdown of applicable fees and charges

7. Appendix A - Standard Settlement Instructions: Payment and settlement instructions for both parties

8. Appendix B - Tax Documentation: Required tax forms and documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





























































Clauses



































Relevant Industries

Banking

Asset Management

Investment Management

Securities Trading

Hedge Funds

Pension Funds

Insurance

Prime Brokerage

Custody Services

Financial Market Infrastructure

Relevant Teams

Legal

Securities Lending

Collateral Management

Risk Management

Compliance

Operations

Trading

Portfolio Management

Prime Services

Custody Operations

Finance

Investment

Documentation

Relevant Roles

Legal Counsel

Securities Lending Trader

Collateral Manager

Risk Manager

Compliance Officer

Operations Manager

Portfolio Manager

Prime Broker

Custody Operations Officer

Trading Desk Manager

Securities Operations Specialist

Financial Controller

Investment Officer

Legal Documentation Specialist

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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