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Stock Loan Agreement
"I need a Stock Loan Agreement for a Hong Kong-based hedge fund acting as borrower with multiple international bank lenders, including specific provisions for automated trading platforms and cross-border collateral arrangements."
1. Parties: Identification of the lender and borrower, including their legal status and registered addresses
2. Background: Context of the agreement and general purpose of the stock lending arrangement
3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and interpretation rules
4. Loans of Securities: Core provisions governing the lending and borrowing of securities, including initiation process and confirmation requirements
5. Transfer of Securities: Mechanics and requirements for the transfer of securities between parties
6. Collateral Requirements: Provisions regarding posting, maintaining, and returning collateral, including margin requirements
7. Distributions and Corporate Actions: Treatment of dividends, rights issues, and other corporate actions affecting the loaned securities
8. Fees and Charges: Lending fees, rates, payment mechanics, and other charges
9. Tax Provisions: Treatment of taxes, including withholding tax and manufactured payments
10. Representations and Warranties: Standard and specific representations and warranties from both parties
11. Events of Default: Definition of events of default and their consequences
12. Termination: Provisions for termination of loans and the agreement, including close-out procedures
13. Set-off Rights: Rights of set-off and netting arrangements
14. Governing Law and Jurisdiction: Choice of law and jurisdiction provisions
1. Agency Provisions: Required when either party acts as agent for underlying principals
2. Custody Arrangements: Needed when involving third-party custodians for securities or collateral
3. Electronic Trading Platform: Required when transactions will be executed through specific trading platforms
4. Market Disruption: Provisions dealing with market disruption events and their consequences
5. Force Majeure: Provisions for extraordinary events affecting performance
6. Central Counterparty Provisions: Required when transactions will be cleared through a CCP
7. Buy-in Procedures: Detailed procedures for buy-in rights if needed
8. Sanctions and Compliance: Additional compliance requirements for regulated entities or cross-border transactions
1. Schedule 1 - Form of Loan Confirmation: Standard form for confirming individual loan transactions
2. Schedule 2 - Eligible Securities: List or criteria of securities eligible for lending under the agreement
3. Schedule 3 - Eligible Collateral: Acceptable forms of collateral and applicable haircuts
4. Schedule 4 - Agency Terms: Detailed terms applicable to agency transactions if relevant
5. Schedule 5 - Contact Details: Administrative and operational contact information for both parties
6. Schedule 6 - Fee Schedule: Detailed fee arrangements and calculations
7. Schedule 7 - Systems and Operations: Operational procedures and requirements for executing transactions
8. Appendix A - Standard Settlement Instructions: Settlement and payment instructions for both parties
Authors
Banking
Financial Services
Investment Management
Securities Trading
Asset Management
Hedge Funds
Broker-Dealers
Investment Banking
Pension Funds
Insurance
Legal
Compliance
Trading
Operations
Risk Management
Collateral Management
Settlement
Middle Office
Product Development
Documentation
Regulatory Reporting
Client Services
Legal Counsel
Compliance Officer
Securities Trading Manager
Collateral Manager
Risk Manager
Operations Director
Securities Lending Trader
Portfolio Manager
Settlement Officer
Prime Brokerage Manager
Chief Operating Officer
Legal Director
Head of Trading
Regulatory Reporting Officer
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