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Stock Borrowing Agreement
"I need a Stock Borrowing Agreement governed by Austrian law for a medium-sized investment firm planning to borrow European equities from multiple banking institutions, with implementation planned for March 2025 and including specific provisions for electronic trading platforms."
1. Parties: Identification of the lender and borrower, including full legal names and addresses
2. Background: Context of the agreement and brief description of the parties' intentions
3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation
4. Loans of Securities: Core provisions governing the borrowing and lending of securities, including initiation process and confirmation requirements
5. Transfer and Return: Procedures and requirements for the transfer of borrowed securities and their eventual return
6. Collateral Requirements: Provisions regarding posting, maintaining, and returning collateral, including margin requirements
7. Rights and Obligations: Detailed responsibilities of each party, including corporate actions, voting rights, and distributions
8. Fees and Payments: Lending fees, payment mechanisms, and treatment of distributions on borrowed securities
9. Tax Provisions: Treatment of taxes, including withholding tax obligations and manufactured payments
10. Representations and Warranties: Standard and specific representations made by each party
11. Events of Default: Definition of default events and consequences
12. Termination: Provisions for termination, including both ordinary and early termination rights
13. Set-off Rights: Rights of set-off and netting provisions
14. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction for disputes
15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Intermediary Provisions: Required when a broker or agent is involved in facilitating the stock borrowing arrangement
2. Special Securities Provisions: Needed for specific types of securities with unique handling requirements
3. Electronic Trading Platform: Required when transactions will be conducted through a specific trading platform
4. Additional Services: Included when additional services such as valuation or reporting are provided
5. Multi-branch Provisions: Required when either party operates through multiple branches or jurisdictions
6. Currency Provisions: Required when transactions involve multiple currencies
7. Central Counterparty Provisions: Needed when transactions are cleared through a central counterparty
1. Schedule 1 - Eligible Securities: List of securities eligible for borrowing under the agreement
2. Schedule 2 - Fee Schedule: Detailed fee structure and calculation methodologies
3. Schedule 3 - Form of Loan Confirmation: Standard form for confirming individual loan transactions
4. Schedule 4 - Collateral Parameters: Detailed collateral requirements, haircuts, and eligible collateral types
5. Schedule 5 - Notice Details: Contact information and notice requirements for both parties
6. Schedule 6 - Agency Terms: Terms applicable when acting as agent (if applicable)
7. Appendix A - Operating Procedures: Detailed operational procedures for loan initiation, maintenance, and termination
8. Appendix B - Tax Documentation: Required tax forms and documentation
9. Appendix C - Standard Settlement Instructions: Settlement and payment instructions for both parties
Authors
Act of Insolvency
Adequate Financial Resources
Agency Agreement
Agent
Agreed Currency
Alternative Collateral
Applicable Law
Appropriate Market
Approved Banking Day
Austrian Business Day
Automatic Early Termination
Available Securities
Base Currency
Borrowed Securities
Borrower
Borrowing Request
Business Day
Cash Collateral
Close of Business
Collateral
Collateral Margin Percentage
Collateral Transfer
Confirmation
Corporate Action
Default Market Value
Default Notice
Defaulting Party
Delivery Date
Designated Office
Distribution
Early Termination Date
Equivalent Collateral
Equivalent Securities
Event of Default
Exercise Price
Financial Instruments
Income
Income Payment Date
Income Record Date
Lender
Lending Fee
Loan
Loan Date
Loan Confirmation
Margin Call
Margin Percentage
Margin Transfer
Market Value
Minimum Loan Period
Non-Defaulting Party
Notice of Default
Notification Time
Parties
Posted Collateral
Principal
Proceedings
Purchase Price
Regulatory Authority
Relevant Payment Date
Required Collateral Value
Return Date
Securities
Securities Lending Transaction
Settlement Date
Standard Settlement Time
Termination Date
Termination Notice
Transaction
Transfer Date
Valuation Date
Valuation Percentage
Valuation Time
Value Date
Voting Rights
Loans of Securities
Delivery of Securities
Title Transfer
Collateral Requirements
Margin Maintenance
Substitution of Collateral
Income and Corporate Actions
Voting Rights
Fee Payment
Tax Provisions
Representations and Warranties
Covenants
Events of Default
Consequences of Default
Set-off Rights
Termination
Close-out Netting
Market Disruption
Force Majeure
Transfer and Assignment
Confidentiality
Notices
Record Keeping
Regulatory Compliance
Anti-Money Laundering
Dispute Resolution
Governing Law
Jurisdiction
Counterparts
Severability
Entire Agreement
Third Party Rights
Amendment and Waiver
Agency Provisions
Indemnification
Transaction Reporting
Settlement Instructions
Electronic Communications
Banking
Investment Management
Securities Trading
Asset Management
Insurance
Hedge Funds
Pension Funds
Financial Services
Investment Banking
Brokerage Services
Custodial Services
Legal Services
Legal
Compliance
Trading Operations
Risk Management
Securities Lending
Collateral Management
Settlement
Treasury
Portfolio Management
Documentation
Credit Risk
Trading Desk
Client Relations
Regulatory Reporting
Securities Lending Manager
Trading Operations Director
Legal Counsel
Compliance Officer
Risk Manager
Portfolio Manager
Securities Operations Manager
Collateral Manager
Trading Desk Manager
Settlement Officer
Relationship Manager
Treasury Manager
Chief Investment Officer
Head of Securities Finance
Documentation Specialist
Credit Risk Officer
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