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 ?
Together with legal support from Norton Rose Fulbright, the GDALA adapts the legal frameworks typically seen in ISLA's Global Master Securities Lending Agreements, ICMA/ SIFMA's Global Master Repurchase Agreements and ISDA's Master Agreements and applied it to crypto.
Affected agreements include master repurchase and securities lending agreements, as well as ISDA master agreements.
USE OF REPURCHASE, DEPOSIT AND SECURITIES LENDING AGREEMENTS TO ACHIEVE MATCH FUNDING - GENERALLY NO LIQUIDITY FACILITIES
In relation to Series III Chesham may, in conjunction with the financing of each asset , enter into a repurchase agreement ("Repo") or a securities lending agreements ("Loan") under which the counterparty will be obliged to make a payment on or before the maturity date of the related ABCP or on demand, in an amount at least equal to the face amount of maturing ABCP.
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. (143) If the administrators successfully challenge the charges, ANZ would lose its status as a secured creditor in respect of that $95 000 000.
Also discussed are the implications of the treatment of repurchase and securities lending agreements.
Securities lending agreements are similar to repurchase agreements in that the owner transfers title to the securities with an agreement that a like quantity of the same or similar securities will be given back at a future date or under agreed-upon conditions.
Repurchase and securities lending agreements pose a problem for the TIC system.
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.

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