Securities Lending Agreement

Securities Lending Agreement

An agreement governing the loan of a stock, derivative, or other security to an investor. A securities lending agreement requires the borrower to put up collateral, such as cash, security, or a letter of credit. It also states how long the loan lasts, what fee the lender receives, and the amount and type of collateral. Securities lending agreements are important to short selling, in which an investor borrows securities in order to immediately sell them.
References in periodicals archive ?
Finance director Jeff Spies has recommended the approval of a resolution to terminate the city's securities lending agreement with Wachovia Global Securities.
A standard-form securities lending agreement treats the bankruptcy filing by the borrower as a default.
82) The application was made on the basis that the Federal Court was yet to decide on important issues of law in relation to the securities lending agreement used by Opes Prime, and to give the administrator time to consider whether a deed of company arrangement may be in the best interests of creditors.
Union Bank claimed that ERISA-based contractual indemnity clauses in the Corporate Co-Trustee Agreement and Securities Lending Agreement between Union Bank and the board of trustees shielded the bank from liability.
Affected agreements include master repurchase and securities lending agreements, as well as ISDA master agreements.
While some large 401(k) plans make securities lending agreements directly, most of the transactions that affect these plans happen indirectly, when providers of investment options within a plan do securities lending.
Also discussed are the implications of the treatment of repurchase and securities lending agreements.
While some large 401(k) plans make securities lending agreements directly, most lending affecting these plans happens indirectly, when providers of investment options within a plan do securities lending.

Full browser ?