Simple Stock Loan Agreement for the lending / borrowing of securities.
The Lender is desirous of lending stock and the Borrower is desirous of borrowing stock and they have agreed to enter into stock borrowing and lending transactions subject to the terms and conditions of this agreement.
Subject to the terms and conditions of this Agreement either the Lender or the Borrower may orally initiate a transaction whereby the Lender may, from time to time, lend stock to the Borrower. The parties shall agree orally on the terms of each Loan, which shall be confirmed subsequently in a contract note. Such contract note shall form part of this agreement and shall include the issuer of the stock, the descriptions and amount of stock to be lent, the terms of compensation (including the rate and the minimum period for which compensation will be paid), and the amount of Collateral to be delivered by the Borrower, (subject as provided in Clause 4 hereof), the duration of the Loan, the place and method of delivery of the Loaned Stock and the Collateral and such other terms as the parties may deem necessary at the time in relation to a Loan which terms may be amended during the Loan upon agreement of the parties hereto. Notwithstanding the provisions in this agreement with respect to when a Loan occurs, a Loan hereunder shall not occur until both the Loaned Stock and the Collateral therefor shall have been delivered to the Borrower and the Lender respectively. The Lender also represents that, as to the Loaned Stock so delivered, it shall have at the time of delivery no present intention to sell the same and that no such Loan or delivery shall constitute for any purpose a purchase or sale of the Loaned Stock.
The contract covers deliveries of loaned stock, collateral, loan rebate fee and loan fee, termination by parties, dividends, distributions, etc, mark to market, return of collateral by the lender, cost and other expenses, events of default, the lender's remedies, the borrowers remedies, representations of the parties, miscellaneous, remedies, notice.
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