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Stock Borrowing Agreement Template for Austria

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Key Requirements PROMPT example:

Stock Borrowing Agreement

"I need a Stock Borrowing Agreement governed by Austrian law for a medium-sized investment firm planning to borrow European equities from multiple banking institutions, with implementation planned for March 2025 and including specific provisions for electronic trading platforms."

Document background
The Stock Borrowing Agreement is a fundamental document used in the Austrian financial markets to facilitate securities lending transactions between financial institutions. It is typically employed when one party (the borrower) requires temporary access to specific securities for purposes such as covering short positions, supporting trading strategies, or meeting settlement obligations. The agreement, governed by Austrian law, establishes comprehensive terms for the lending arrangement, including transfer mechanics, collateral requirements, fee structures, and risk management provisions. It incorporates requirements from key Austrian legislation such as the Securities Deposit Act and Financial Market Authority regulations, while also adhering to international best practices. This document is essential for financial institutions operating in the Austrian market who engage in securities lending activities.
Suggested Sections

1. Parties: Identification of the lender and borrower, including full legal names and addresses

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and rules of interpretation

4. Loans of Securities: Core provisions governing the borrowing and lending of securities, including initiation process and confirmation requirements

5. Transfer and Return: Procedures and requirements for the transfer of borrowed securities and their eventual return

6. Collateral Requirements: Provisions regarding posting, maintaining, and returning collateral, including margin requirements

7. Rights and Obligations: Detailed responsibilities of each party, including corporate actions, voting rights, and distributions

8. Fees and Payments: Lending fees, payment mechanisms, and treatment of distributions on borrowed securities

9. Tax Provisions: Treatment of taxes, including withholding tax obligations and manufactured payments

10. Representations and Warranties: Standard and specific representations made by each party

11. Events of Default: Definition of default events and consequences

12. Termination: Provisions for termination, including both ordinary and early termination rights

13. Set-off Rights: Rights of set-off and netting provisions

14. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Intermediary Provisions: Required when a broker or agent is involved in facilitating the stock borrowing arrangement

2. Special Securities Provisions: Needed for specific types of securities with unique handling requirements

3. Electronic Trading Platform: Required when transactions will be conducted through a specific trading platform

4. Additional Services: Included when additional services such as valuation or reporting are provided

5. Multi-branch Provisions: Required when either party operates through multiple branches or jurisdictions

6. Currency Provisions: Required when transactions involve multiple currencies

7. Central Counterparty Provisions: Needed when transactions are cleared through a central counterparty

Suggested Schedules

1. Schedule 1 - Eligible Securities: List of securities eligible for borrowing under the agreement

2. Schedule 2 - Fee Schedule: Detailed fee structure and calculation methodologies

3. Schedule 3 - Form of Loan Confirmation: Standard form for confirming individual loan transactions

4. Schedule 4 - Collateral Parameters: Detailed collateral requirements, haircuts, and eligible collateral types

5. Schedule 5 - Notice Details: Contact information and notice requirements for both parties

6. Schedule 6 - Agency Terms: Terms applicable when acting as agent (if applicable)

7. Appendix A - Operating Procedures: Detailed operational procedures for loan initiation, maintenance, and termination

8. Appendix B - Tax Documentation: Required tax forms and documentation

9. Appendix C - Standard Settlement Instructions: Settlement and payment instructions for both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions











































































Clauses







































Relevant Industries

Banking

Investment Management

Securities Trading

Asset Management

Insurance

Hedge Funds

Pension Funds

Financial Services

Investment Banking

Brokerage Services

Custodial Services

Legal Services

Relevant Teams

Legal

Compliance

Trading Operations

Risk Management

Securities Lending

Collateral Management

Settlement

Treasury

Portfolio Management

Documentation

Credit Risk

Trading Desk

Client Relations

Regulatory Reporting

Relevant Roles

Securities Lending Manager

Trading Operations Director

Legal Counsel

Compliance Officer

Risk Manager

Portfolio Manager

Securities Operations Manager

Collateral Manager

Trading Desk Manager

Settlement Officer

Relationship Manager

Treasury Manager

Chief Investment Officer

Head of Securities Finance

Documentation Specialist

Credit Risk Officer

Industries









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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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