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Securities Lending Agreement
"I need a Securities Lending Agreement governed by Belgian law for a pension fund lending Belgian government bonds to multiple broker-dealers, with tri-party collateral management arrangements and specific provisions for automated lending platforms to be implemented by March 2025."
1. Parties: Identification of the lender and borrower, including their legal status and registered addresses
2. Background: Context of the agreement and general purpose of the securities lending arrangement
3. Definitions: Detailed definitions of terms used throughout the agreement, including financial, operational, and legal terms
4. Loans of Securities: Core provisions regarding the lending of securities, including initiation process and conditions precedent
5. Delivery and Return: Procedures and timing for the delivery of borrowed securities and their eventual return
6. Collateral Requirements: Details of required collateral, including type, amount, maintenance, and margin requirements
7. Income and Corporate Actions: Treatment of dividends, interest, and other corporate actions affecting the loaned securities
8. Fees and Charges: Lending fees, rates, and other charges applicable to the securities lending transactions
9. Tax Provisions: Treatment of taxes, including withholding tax, indemnities, and gross-up provisions
10. Representations and Warranties: Standard and specific representations and warranties from both parties
11. Events of Default: Definition of events of default and their consequences
12. Termination: Conditions and procedures for termination of the agreement or individual loans
13. Set-off Rights: Rights of set-off and their exercise in accordance with Belgian law
14. Notices: Communication procedures and contact details for notices between parties
15. Governing Law and Jurisdiction: Specification of Belgian law as governing law and jurisdiction for disputes
1. Agency Lending: Additional provisions when lending is conducted through an agent, defining agent's roles and responsibilities
2. Third-Party Rights: Provisions regarding rights of third parties, particularly relevant if involving custodians or intermediaries
3. Electronic Trading: Specific provisions for electronic trading platforms and automated lending processes
4. Sanctions and Market Requirements: Additional compliance requirements regarding sanctions and specific market regulations
5. Central Counterparty Provisions: Special provisions when transactions are cleared through a central counterparty
6. Non-Cash Collateral: Specific provisions for when non-cash collateral is permitted, including eligible types and haircuts
7. Tri-Party Arrangements: Additional provisions when using a tri-party collateral agent
8. Buy-In Procedures: Detailed procedures for buy-in rights in case of failure to return securities
1. Schedule 1 - Eligible Securities: List of securities eligible for lending under the agreement
2. Schedule 2 - Eligible Collateral: Types of acceptable collateral and associated haircuts
3. Schedule 3 - Fee Schedule: Detailed fee structures and calculation methodologies
4. Schedule 4 - Operating Procedures: Detailed operational procedures including cut-off times and delivery instructions
5. Schedule 5 - Form of Loan Confirmation: Standard form for confirming individual lending transactions
6. Schedule 6 - Contact Details: List of authorized personnel and contact information for both parties
7. Schedule 7 - Tax Documentation: Required tax forms and documentation
8. Appendix A - Standard Settlement Instructions: Detailed settlement instructions for securities and collateral transfers
9. Appendix B - Reporting Requirements: Templates and procedures for required reporting under SFTR and local regulations
Authors
Banking
Investment Management
Insurance
Pension Funds
Asset Management
Securities Trading
Broker-Dealers
Financial Services
Investment Banking
Fund Management
Legal
Compliance
Risk Management
Securities Operations
Trading
Portfolio Management
Securities Lending
Collateral Management
Settlement
Documentation
Regulatory Reporting
Treasury
Credit Risk
Investment Operations
Legal Counsel
Securities Operations Manager
Compliance Officer
Risk Manager
Trading Manager
Portfolio Manager
Securities Lending Trader
Collateral Manager
Settlement Officer
Documentation Specialist
Regulatory Reporting Officer
Treasury Manager
Investment Officer
Credit Risk Analyst
Legal Documentation Manager
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