Stock Borrowing Agreement Template for Belgium

The Stock Borrowing Agreement is essential for financial institutions engaged in securities lending transactions within the Belgian market. This document is utilized when one party (the borrower) needs to temporarily acquire securities from another party (the lender), typically for purposes such as settlement coverage, market making, or short selling activities. The agreement must comply with Belgian financial law, including the Financial Law of 2 August 2002 and relevant Royal Decrees, as well as EU regulations such as the Securities Financing Transactions Regulation (SFTR). It includes detailed provisions for collateral management, corporate actions, voting rights, and tax treatments specific to the Belgian jurisdiction. The document is particularly important for ensuring regulatory compliance while facilitating efficient securities lending operations in the Belgian and broader European markets.

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

4. Loans of Securities: Core provisions governing the borrowing mechanism, including loan requests, deliveries, and minimum loan values

5. Transfer of Securities: Procedures and requirements for transferring securities between parties

6. Collateral Requirements: Obligations regarding posting and maintaining collateral, including marking to market

7. Fees and Charges: Lending fees, compensation for distributions, and other applicable charges

8. Rights and Obligations: General rights and obligations of both parties during the term of the agreement

9. Corporate Actions: Handling of dividends, voting rights, and other corporate events affecting borrowed securities

10. Tax Provisions: Treatment of tax obligations, withholding requirements, and gross-up provisions

11. Representations and Warranties: Standard representations and specific confirmations required under Belgian law

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

13. Termination: Provisions for ending the agreement and individual loans

14. Set-off Rights: Rights to set off obligations between parties

15. Notices: Communication requirements and contact details

16. Governing Law and Jurisdiction: Confirmation of Belgian law governance and jurisdiction provisions