Securities Lending Agreement

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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 ?
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.
Recognisirig the urgency of resolving the purported uncertainty of the terms of the securities lending agreements between Opes Prime and its clients, and between ANZ and Opes Prime, Finkelstein J in Beconwood Securities Pty Ltd v Australia and New Zealand Banking Group Ltd ('Beconwood') isolated the issue of whether clients retained any sort of interest in the shares being sold off by ANZ.
From a legal perspective, however, it is important to separate the right of the financiers to sell the securities that were transferred to them under the securities lending agreements and the charges granted to ANZ and Merrill Lynch in Opes Prime's final days.
The charges were given by the companies in favour of ANZ in return for an additional $95 000 000 of emergency funding (142) which presumably could not be supported by the securities lodged by Opes Prime under the securities lending agreements.
Also discussed are the implications of the treatment of repurchase and securities lending agreements.
Repurchase and securities lending agreements pose a problem for the TIC system.
As of September 30, 2008, ACE has entered into securities lending agreements approximating $2 billion.
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.
These counterparties have agreed to both a contractual reduction of margin requirements for financing the company's mortgage securities and a suspension of their rights to invoke further margin calls and related rights under their reverse repurchase agreements, global master securities lending agreements and auction swap agreements subject to certain covenants and conditions discussed in the company's March 19, 2008, press release announcing the agreement.
8 billion of reverse repurchase agreement financing whereby these counterparties have agreed to both a contractual reduction of margin requirements for financing the company's mortgage securities and a suspension of their rights to invoke further margin calls and related rights under their reverse repurchase agreements, global master securities lending agreements and auction swap agreements with the company subject to certain covenants and conditions discussed below.
Her work is principally focused on representation of hedge fund, broker-dealer and bank clients with respect to the development and negotiation of specialized financing arrangements, derivatives and other financial products, including prime brokerage and securities lending agreements, various option, swap, repurchase and forward arrangements, and a wide variety of equity, credit and hedge fund-linked structures.

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