Stock Borrowing Agreement for United Arab Emirates

Stock Borrowing Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the terms and conditions for borrowing securities between financial institutions. The document complies with UAE Securities and Commodities Authority (SCA) regulations and addresses key aspects including collateral requirements, rights and obligations, corporate actions, and default procedures. It incorporates specific UAE regulatory requirements while following international best practices for securities lending, with provisions for both conventional and Islamic finance structures where applicable.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Stock Borrowing Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Stock Borrowing Agreement?

The Stock Borrowing Agreement is a critical document used in UAE financial markets to facilitate securities lending transactions between financial institutions. It enables market participants to borrow securities for various purposes, including short selling, settlement coverage, and market making activities. The agreement must comply with UAE Federal Law No. 4 of 2000 and SCA Board Resolution No. 47 of 2012, which specifically regulate securities borrowing and lending activities. The document includes detailed provisions for collateral management, corporate actions, voting rights, and default scenarios, while ensuring compliance with UAE regulatory requirements and optional Shariah compliance provisions where needed. This agreement is particularly important in the UAE market context, where securities borrowing plays a crucial role in maintaining market liquidity and enabling sophisticated trading strategies.

What sections should be included in a Stock Borrowing Agreement?

1. Parties: Identification of the lender and borrower, including full legal names, registration details, and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the stock borrowing arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical terms related to securities, collateral, and market practices

4. Loans of Securities: Core provisions governing the borrowing of securities, including initiation process, confirmation requirements, and transfer mechanisms

5. Collateral: Requirements for posting collateral, including type, value, maintenance margins, and substitution rights

6. Fees and Charges: Borrowing fees, payment schedules, and calculation methods

7. Rights and Obligations: Detailed responsibilities of both parties, including corporate action provisions and voting rights

8. Representations and Warranties: Standard representations regarding capacity, authority, and compliance with laws

9. Events of Default: Definition of default events and consequences

10. Close-out and Set-off: Procedures for terminating transactions and settling obligations

11. Taxation: Treatment of taxes, including withholding obligations and tax indemnities

12. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

What sections are optional to include in a Stock Borrowing Agreement?

1. Shariah Compliance: Required when the agreement needs to comply with Islamic finance principles

2. DIFC/ADGM Provisions: Additional provisions when either party is based in or the transaction involves DIFC or ADGM

3. Agency Provisions: Required when either party is acting as agent for underlying clients

4. Tri-Party Arrangements: Required when using a tri-party collateral agent

5. Electronic Trading Platform: Specific provisions for agreements executed through electronic platforms

6. Market Making Provisions: Special terms for market makers or primary dealers

What schedules should be included in a Stock Borrowing Agreement?

1. Schedule 1 - Eligible Securities: List of securities eligible for borrowing under the agreement

2. Schedule 2 - Eligible Collateral: Specified forms of acceptable collateral and applicable haircuts

3. Schedule 3 - Fee Schedule: Detailed fee structure and calculation methodology

4. Schedule 4 - Notice Details: Contact information and communication protocols for both parties

5. Schedule 5 - Form of Loan Confirmation: Standard form for confirming individual borrowing transactions

6. Schedule 6 - Collateral Parameters: Detailed specifications for margin percentages and valuation procedures

7. Appendix A - Standard Settlement Instructions: Account details and settlement procedures for securities and collateral transfers

8. Appendix B - Required Documentation: List of supporting documents required from each party

Authors

Alex Denne

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

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Banking

Investment Management

Securities Trading

Asset Management

Brokerage Services

Capital Markets

Islamic Finance

Relevant Teams

Legal

Compliance

Trading Operations

Risk Management

Securities Lending

Middle Office

Settlement Operations

Collateral Management

Investment Operations

Market Making

Shariah Advisory

Regulatory Reporting

Relevant Roles

Securities Lending Manager

Legal Counsel

Compliance Officer

Trading Operations Manager

Risk Manager

Investment Officer

Settlements Manager

Collateral Manager

Chief Investment Officer

Head of Trading

Market Making Manager

Shariah Compliance Officer

Regulatory Reporting Officer

Portfolio Manager

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

Find the exact document you need

Salary Loan Agreement

UAE-governed agreement establishing terms for a salary-backed personal loan between a financial institution and employed individual, including salary assignment provisions.

find out more

Project Finance Loan Agreement

A UAE-law governed template for project finance loans, integrating conventional and Islamic finance principles for large-scale projects.

find out more

OverAgreement

UAE-governed agreement establishing terms for bank overdraft facilities, including limits, rates, and security arrangements under UAE banking regulations.

find out more

Non Recourse Loan Agreement

UAE-law non-recourse loan template for secured financing, limiting lender's recourse to designated collateral assets.

find out more

Mezzanine Loan Agreement

A UAE-law mezzanine loan template addressing Sharia compliance, regulatory requirements, and security interests for financing arrangements.

find out more

Loan Participation Agreement

A UAE banking document template for structuring loan participation agreements, compliant with local laws and international standards.

find out more

Loan Note Register

UAE-compliant template for maintaining a structured register of loan notes, ensuring proper documentation and regulatory compliance under UAE federal laws.

find out more

Loan Facility Agreement

A UAE legal document template for establishing credit facilities, incorporating conventional and Islamic financing options.

find out more

Loan Consent Form

A UAE-compliant document capturing formal consent and acknowledgment from parties involved in a lending transaction, adhering to UAE Federal Laws and Banking regulations.

find out more

Litigation Financing Agreement

UAE law-governed agreement establishing terms for third-party funding of litigation, including funding commitments, success fees, and control mechanisms.

find out more

Inter Corporate Loan Agreement

UAE-governed agreement establishing terms for corporate-to-corporate lending, including loan facility, security, and enforcement provisions under UAE law.

find out more

House Loan Contract

UAE-governed agreement between a financial institution and borrower for property financing, detailing loan terms and mortgage security arrangements.

find out more

Hand Loan Agreement

A UAE-compliant agreement documenting a personal loan between parties, outlining loan terms and repayment conditions in accordance with UAE Civil Code and Sharia principles.

find out more

Flexi Finance Loan Agreement

UAE-governed flexible loan facility agreement allowing variable drawdowns subject to a maximum limit, compliant with UAE banking and finance laws.

find out more

Facility Letter Mortgage

A UAE-compliant document combining a credit facility offer with mortgage security arrangements, outlining financing terms and property security details under UAE Federal and Emirates laws.

find out more

Employee Forgivable Loan Agreement

A UAE legal document offering forgivable loans to employees, ensuring retention through compliance with local labor laws and Sharia principles.

find out more

Employee Equipment Loan Agreement

A UAE legal document outlining terms for employee equipment loans, ensuring compliance with labor and property laws.

find out more

Employee Cash Advance Agreement

A UAE legal document outlining salary advance terms, ensuring compliance with labor laws and protecting employer-employee interests.

find out more

Domestic Helper Loan Agreement

A UAE legal document outlining loan terms for domestic helpers, ensuring compliance with employment and financial regulations.

find out more

Device Loan Agreement

A UAE legal document for loaning electronic devices, detailing usage, maintenance, and return conditions.

find out more

Debt To Equity Conversion Agreement

A UAE legal document for converting company debt into equity, ensuring compliance with local laws and regulations.

find out more

Credit Terms Agreement

UAE-compliant credit terms agreement template establishing terms and conditions for credit facilities between financial institutions and borrowers.

find out more

Borrowing Form

A UAE legal template for documenting lending arrangements, accommodating both conventional and Islamic financing principles.

find out more

Assignment Of Loan Agreement

A UAE law-governed agreement transferring rights and obligations under an existing loan from one lender to another, compliant with UAE Civil Code and banking regulations.

find out more

Assignment Of Debt Agreement

A UAE legal document for transferring creditor rights, ensuring compliance with civil and Sharia law principles.

find out more

Agreement Between Two Persons For Money

UAE-governed agreement formalizing monetary arrangements between two individuals, compliant with UAE Civil Code and Sharia principles.

find out more

Title Loan Agreement

A UAE legal document for vehicle-secured loans, ensuring compliance with local laws and Sharia principles.

find out more

Money Lending Form

UAE-compliant lending agreement template suitable for both conventional and Islamic financing arrangements, incorporating local regulatory requirements and banking practices.

find out more

Subordinated Loan Agreement

UAE law-governed template for subordinated loan arrangements, establishing terms and conditions for subordinated debt financing in compliance with UAE regulations.

find out more

Forgivable Loan Agreement

A UAE legal template for forgivable loans, detailing terms, forgiveness conditions, and compliance with local laws.

find out more

Loan Agreement With Guarantor

A UAE legal template for secured loans with guarantor, ensuring compliance with local lending and guarantee laws.

find out more

Payday Loan Contract

A UAE-law governed payday loan contract template for short-term loans, incorporating regulatory and consumer protection provisions.

find out more

Simple Loan Application Form

A UAE banking sector template for standardized loan applications, integrating conventional and Islamic financing options.

find out more

Loan Guarantor Agreement

A UAE legal document for third-party loan guarantee, ensuring compliance with local banking and Sharia regulations.

find out more

Employee Laptop Agreement

UAE-governed agreement establishing terms for company laptop provision to employees, including usage policies and security requirements.

find out more

Debt Purchase Agreement

A UAE legal template for debt purchase agreements, ensuring compliance with federal laws and Islamic finance principles.

find out more

Personal Loan Receipt

A UAE banking document detailing personal loan terms, ensuring compliance with local regulations and consumer protection laws.

find out more

Simple Convertible Loan Agreement

UAE law-governed convertible loan agreement template for company financing with loan-to-equity conversion options.

find out more

Work Loan Agreement

A UAE-governed agreement establishing terms for an employer-provided loan to an employee, including repayment terms and obligations under UAE Federal Laws.

find out more

Board Resolution To Borrow

A UAE legal document authorizing corporate borrowing, detailing board approval, loan terms, and designated signatories.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now