Securities Lending Agreement for South Africa

Securities Lending Agreement Template for South Africa

A comprehensive legal agreement governed by South African law that establishes the framework for securities lending transactions between two parties. The document follows the requirements of the Financial Markets Act No. 19 of 2012 and related South African legislation, setting out the terms and conditions for the temporary transfer of securities against collateral. It includes detailed provisions for loan initiation, collateral management, corporate actions, default handling, and settlement procedures, while ensuring compliance with South African exchange control regulations and market practices.

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
Securities Lending 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 Securities Lending Agreement?

The Securities Lending Agreement serves as the primary contractual framework for institutions engaging in securities lending transactions within the South African market. This document is essential when financial institutions wish to establish ongoing securities lending arrangements, whether for yield enhancement, short selling coverage, or market making activities. The agreement comprehensively addresses all aspects of securities lending transactions, including loan terms, collateral requirements, rights and obligations of parties, and default scenarios, while ensuring compliance with South African regulatory requirements, particularly the Financial Markets Act No. 19 of 2012 and Exchange Control Regulations. It is designed to align with international best practices while incorporating specific provisions required under South African law.

What sections should be included in a Securities Lending Agreement?

1. Parties: Identifies the lender and borrower, including their registration details and addresses

2. Background: Sets out the context of the agreement and the parties' intentions to enter into securities lending transactions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Loans of Securities: Core provisions governing the lending and borrowing of securities, including loan procedures and terms

5. Collateral Requirements: Details the types, delivery, and maintenance of acceptable collateral

6. Marking to Market: Procedures for daily valuation of loaned securities and collateral

7. Income Payments and Corporate Actions: Handling of dividends, interest, and other corporate events affecting loaned securities

8. Tax and Withholding: Treatment of taxes, including withholding tax and manufactured payments

9. Events of Default: Defines events of default and their consequences

10. Set-off and Close-out: Rights and procedures for set-off and closing out transactions

11. Representations and Warranties: Standard representations and warranties from both parties

12. Covenants: Ongoing obligations of the parties

13. Indemnity and Limitation of Liability: Scope of indemnification and limitations on liability

14. Notices: Communication procedures between parties

15. Governing Law and Jurisdiction: Specifies South African law as governing law and jurisdiction for disputes

16. General Provisions: Standard boilerplate clauses including amendments, assignments, and severability

What sections are optional to include in a Securities Lending Agreement?

1. Agency Lending: Required when either party acts as agent for underlying principals

2. Custody Arrangements: Needed when involving third-party custodians

3. Automated Trading Systems: Required when using electronic trading platforms

4. Foreign Exchange Transactions: Needed for cross-border lending involving currency exchange

5. Specific Securities Provisions: Special terms for particular types of securities (e.g., fixed income, equities)

6. Central Counterparty Clearing: Required when transactions are cleared through a CCP

7. Buy-in Procedures: Detailed procedures for buying in securities in case of failure to deliver

8. Sanctions and Anti-Money Laundering: Enhanced compliance provisions for high-risk transactions

What schedules should be included in a Securities Lending Agreement?

1. Schedule 1 - Form of Loan Confirmation: Standard form for confirming individual loan transactions

2. Schedule 2 - Eligible Securities: List and characteristics of securities eligible for lending

3. Schedule 3 - Eligible Collateral: Acceptable forms of collateral and applicable haircuts

4. Schedule 4 - Agency Terms: Detailed terms for agency lending arrangements

5. Schedule 5 - Communications Procedures: Technical specifications for notices and communications

6. Schedule 6 - Market Practice: Specific South African market practices and requirements

7. Schedule 7 - Fee Schedule: Lending fees, rebate rates, and other charges

8. Schedule 8 - Settlement Instructions: Standard settlement and payment instructions

9. Appendix A - Contact Details: List of authorized personnel and contact information

10. Appendix B - Tax Documentation: Required tax forms and declarations

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

Jurisdiction

South Africa

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

Pension Fund Management

Insurance

Hedge Fund Management

Broker-Dealer Services

Capital Markets

Relevant Teams

Legal

Compliance

Risk Management

Securities Operations

Trading

Treasury

Settlement

Client Services

Collateral Management

Portfolio Management

Documentation

Front Office

Middle Office

Back Office

Relevant Roles

Legal Counsel

Securities Operations Manager

Compliance Officer

Risk Manager

Treasury Manager

Securities Lending Trader

Portfolio Manager

Collateral Manager

Settlement Officer

Relationship Manager

Chief Operating Officer

Head of Trading

Legal Director

Chief Risk Officer

Head of Operations

Industries
Financial Markets Act No. 19 of 2012: Primary legislation governing securities trading, clearing and settlement systems, and market infrastructure in South Africa. It provides the framework for securities lending transactions.
Securities Services Act 36 of 2004: Although largely replaced by the Financial Markets Act, some provisions remain relevant for securities lending arrangements and market conduct.
Income Tax Act 58 of 1962: Governs the tax treatment of securities lending arrangements, including the treatment of dividends, manufactured payments, and capital gains.
Exchange Control Regulations: Regulates cross-border securities lending transactions and associated payments, particularly relevant when dealing with foreign counterparties.
Financial Intelligence Centre Act 38 of 2001: Sets out anti-money laundering requirements and due diligence procedures for financial transactions including securities lending.
Companies Act 71 of 2008: Relevant for understanding the corporate governance requirements and shareholder rights when lending securities of South African companies.
Consumer Protection Act 68 of 2008: May be applicable when dealing with non-institutional clients, affecting disclosure requirements and fair treatment principles.
Financial Advisory and Intermediary Services Act 37 of 2002: Relevant when the securities lending arrangement involves financial intermediaries or advisors.
Financial Sector Regulation Act 9 of 2017: Establishes the twin peaks model of financial sector regulation and affects overall compliance requirements for securities lending.
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

Employee Loan Contract

A South African law-governed agreement establishing terms for an employer-provided loan to an employee, including repayment through salary deductions.

find out more

Loans With Debt Agreement

A South African law-governed agreement combining loan provisions with debt arrangements, compliant with the National Credit Act and related legislation.

find out more

Take Over Car Loan Payments Contract

A South African law-governed agreement transferring vehicle loan payment obligations from an original borrower to a new borrower, with lender consent.

find out more

Repayment Of Debt Agreement

A South African law-governed agreement that formalizes debt repayment terms between creditor and debtor, ensuring compliance with local credit legislation.

find out more

Cellphone Loan Agreement

South African law-compliant agreement for financing mobile devices, covering loan terms, device ownership, and regulatory requirements.

find out more

Employer Loan To Employee Agreement

South African law-governed agreement establishing terms for an employer-provided loan to an employee, compliant with the National Credit Act and employment legislation.

find out more

Friendship Loan Agreement

A South African legal document formalizing loan arrangements between friends or family members, establishing clear terms while maintaining personal relationships.

find out more

Personal Loan Letter Between Friends

A South African legal document formalizing a personal loan agreement between friends, outlining loan terms and conditions while maintaining compliance with local legislation.

find out more

Peer To Peer Lending Agreement

South African-compliant agreement establishing terms for peer-to-peer lending between parties, including loan details, repayment terms, and regulatory requirements.

find out more

Simple Interest Loan Contract

A South African law-governed loan agreement with simple interest terms, compliant with the National Credit Act and related legislation.

find out more

Revolving Credit Contract

A South African law-governed agreement establishing a revolving credit facility between a credit provider and borrower, compliant with the National Credit Act.

find out more

Loan Car Form

A South African law-compliant agreement governing the temporary loan of a vehicle between parties, outlining terms, conditions, and responsibilities.

find out more

Family Member Promissory Note

A South African legal document formalizing loan agreements between family members, establishing terms and conditions while ensuring compliance with local lending and tax regulations.

find out more

Vendor Finance Loan Agreement

A South African law-governed agreement establishing terms for vendor-provided financing for goods or services purchase, compliant with local credit and banking regulations.

find out more

Overloan Agreement

A South African law-governed agreement that documents the extension of credit beyond an existing loan facility's limit, setting out terms for the increased borrowing amount.

find out more

Acknowledgement Of Debt Agreement

A South African legal document where a debtor formally acknowledges their debt obligation and agrees to specific repayment terms under South African law.

find out more

Facility Loan Agreement

A South African law-governed agreement establishing terms for a loan facility, including lending conditions, repayment terms, and security arrangements.

find out more

Overagreement

A South African law-governed master agreement that provides an overarching framework for multiple sub-agreements between parties.

find out more

Inter Corporate Loan Agreement

A South African law-governed agreement establishing loan terms between corporate entities, including financial terms, security, and compliance requirements.

find out more

Subordinated Loan Agreement

South African law-governed agreement establishing terms for subordinated debt, including ranking provisions and payment conditions.

find out more

Work Loan Agreement

A South African agreement combining employment terms with loan provisions, governed by national credit and employment legislation.

find out more

Peer To Peer Lending Contract

South African law-compliant agreement for direct lending between parties, incorporating National Credit Act requirements and essential lending terms.

find out more

Interest Loan Agreement

A South African law-governed agreement establishing terms for an interest-bearing loan, compliant with the National Credit Act and related legislation.

find out more

Letter To Borrow Money From Friend

A South African legal document formalizing a personal loan agreement between friends, including loan terms and repayment conditions while complying with local legislation.

find out more

Student Loan Agreement

South African law-governed agreement establishing terms for student financial assistance, compliant with National Credit Act and related legislation.

find out more

Simple Loan Application Form

South African loan application form compliant with NCA, POPIA, and FICA, designed for gathering borrower information and obtaining necessary consents.

find out more

Private Lending Term Sheet

A South African law-governed preliminary document outlining key terms and conditions for a private loan agreement, serving as the basis for detailed loan documentation.

find out more

Personal Loan Receipt

A South African legal document acknowledging the disbursement of a personal loan and its key terms, compliant with the National Credit Act.

find out more

Loan Agreement With Guarantor

A South African law-governed agreement establishing loan terms between lender and borrower, secured by a third-party guarantor's commitment to ensure repayment.

find out more

Investment Loan Contract

A South African law-governed agreement establishing terms for an investment loan, including loan details, security arrangements, and compliance with local financial regulations.

find out more

Facility Agreement

A South African law-governed agreement establishing terms and conditions for a lending facility, including loan amount, interest, repayment terms, and security arrangements.

find out more

Employee Laptop Loan Agreement

A South African law-governed agreement setting out terms for loaning company laptops to employees, including usage, maintenance, and return conditions.

find out more

Car Payment Plan Agreement

A South African law-compliant agreement outlining terms and conditions for vehicle purchase through structured payments, incorporating National Credit Act requirements.

find out more

Borrowing Form

A South African law-compliant document that establishes legally binding terms for a loan between a credit provider and borrower, incorporating National Credit Act requirements.

find out more

Simple Equipment Borrowing Agreement

A South African law-compliant agreement establishing terms and conditions for temporary equipment loans between parties.

find out more

No Loan Agreement

A South African legal document that formally establishes and confirms the absence of any loan relationship between parties.

find out more

International Loan Agreement

A South African law-governed agreement for cross-border lending transactions, establishing terms for international loans while ensuring compliance with local regulations.

find out more

Inter Corporate Deposit Agreement

A South African law-governed agreement regulating corporate deposit arrangements between companies, including terms for deposit placement, interest, and repayment.

find out more

Fixed Sum Loan Agreement

A South African law-governed agreement establishing terms for a fixed sum loan, compliant with the National Credit Act and related regulations.

find out more

Deed Of Assignment Loan Agreement

A South African law-governed agreement transferring rights and obligations under an existing loan from one lender to another, including associated terms and conditions.

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