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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."
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
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
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
Banking
Asset Management
Investment Management
Securities Trading
Hedge Funds
Pension Funds
Insurance
Prime Brokerage
Custody Services
Financial Market Infrastructure
Legal
Securities Lending
Collateral Management
Risk Management
Compliance
Operations
Trading
Portfolio Management
Prime Services
Custody Operations
Finance
Investment
Documentation
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
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