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Short Sale Agreement
"I need a Short Sale Agreement under Dutch law for a hedge fund trading Dutch equities through a prime broker, with specific provisions for daily margin calculations and automated buy-in procedures if the position remains open beyond March 2025."
1. Parties: Identification of the seller and buyer, including full legal names, addresses, and registration details
2. Background: Context of the transaction, including the nature of the assets being sold short and the general purpose of the agreement
3. Definitions: Key terms used throughout the agreement, including financial terms specific to short selling
4. Subject Matter: Detailed description of the securities or assets subject to the short sale
5. Transaction Structure: Mechanics of the short sale, including borrowing arrangements and delivery obligations
6. Price and Payment Terms: Agreement on sale price, payment method, and timing
7. Margin Requirements: Details of initial and maintenance margin requirements
8. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity and authority
9. Closing Conditions: Prerequisites that must be satisfied before the transaction can be completed
10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
11. Default and Remedies: Events constituting default and available remedies for the non-defaulting party
12. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction for disputes
1. Regulatory Compliance: Additional provisions for compliance with specific regulatory requirements, used when parties are subject to particular regulatory oversight
2. Tax Provisions: Specific tax-related provisions and allocations, used when tax implications need to be explicitly addressed
3. Broker Arrangements: Details of any broker involvement and their obligations, used when a broker is involved in the transaction
4. Security Arrangements: Additional security or collateral provisions, used when extra security is required
5. Force Majeure: Provisions for unforeseen circumstances, used when parties want specific protection against external events
6. Confidentiality: Provisions for maintaining confidentiality of transaction details, used when sensitive information is involved
7. Assignment: Rights and restrictions regarding assignment of the agreement, used when transfer rights need to be specifically addressed
1. Schedule 1 - Asset Details: Detailed description of the securities or assets subject to the short sale
2. Schedule 2 - Pricing Mechanism: Detailed calculation methods and formulas for determining prices and adjustments
3. Schedule 3 - Margin Calculations: Detailed methodology for calculating and maintaining margin requirements
4. Schedule 4 - Required Notices: Forms and templates for required notices under the agreement
5. Schedule 5 - Broker Terms: Terms and conditions related to broker services if applicable
6. Appendix A - Compliance Requirements: Detailed regulatory compliance requirements and procedures
7. Appendix B - Standard Settlement Instructions: Details of payment and settlement arrangements
Authors
Financial Services
Investment Banking
Securities Trading
Asset Management
Hedge Funds
Investment Management
Banking
Professional Services
Legal Services
Legal
Compliance
Risk Management
Trading
Operations
Settlement
Portfolio Management
Investment
Finance
Treasury
Corporate Affairs
Trading Manager
Investment Officer
Risk Manager
Compliance Officer
Legal Counsel
Portfolio Manager
Securities Operations Manager
Investment Analyst
Chief Investment Officer
Financial Controller
Settlement Officer
Prime Brokerage Relationship Manager
Head of Trading
Managing Director - Trading
Legal Director
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