A Share Lending Agreement is a fundamental document in securities financing transactions within the Australian financial markets. It is used when parties wish to establish an ongoing arrangement for the temporary transfer of securities against collateral, typically for purposes such as short selling, coverage of settlement failures, or yield enhancement strategies. The agreement must comply with Australian regulatory requirements, including the Corporations Act 2001 and ASIC Market Integrity Rules, while also aligning with international best practices. This document sets out the comprehensive framework for these transactions, including securities delivery and return mechanisms, collateral requirements, corporate action treatments, and default procedures. It's particularly crucial in the Australian market where securities lending plays a vital role in market liquidity and efficiency.

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

2. Background: Context of the agreement and general purpose of the share lending arrangement

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. Loan of Securities: Core provisions regarding the lending and borrowing of securities, including conditions precedent

5. Delivery and Return: Procedures for delivering securities to borrower and returning them to lender

6. Collateral Requirements: Details of required collateral, marking to market, and collateral maintenance

7. Rights and Obligations: Specific rights and obligations of both parties during the lending period

8. Corporate Actions: Handling of dividends, rights issues, voting rights and other corporate actions

9. Fees and Payments: Lending fees, payment procedures, and taxation provisions

10. Representations and Warranties: Standard and specific representations and warranties from both parties

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

12. Termination: Termination events, procedures, and consequences

13. Dispute Resolution: Procedures for resolving disputes between parties

14. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law