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This Securities Lending Agreement template is designed for use in the Hong Kong market, providing a legal framework for securities lending transactions between financial institutions. It is particularly relevant when parties wish to establish an ongoing lending relationship under Hong Kong law, enabling multiple securities lending transactions under a single master agreement. The document incorporates requirements from the Securities and Futures Ordinance and other relevant Hong Kong regulations, while also considering international best practices. It includes comprehensive provisions for collateral management, corporate actions, tax treatments, and default scenarios, making it suitable for both domestic Hong Kong institutions and international entities conducting securities lending activities in the Hong Kong market.

1. Parties: Identification of the lender and borrower, including their legal status and registered addresses

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

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

4. Loans of Securities: Core provisions governing the lending and borrowing of securities, including loan mechanics and procedures

5. Delivery and Redelivery: Procedures and requirements for the delivery of loaned securities and their return

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

7. Margin Maintenance: Requirements for maintaining proper margin levels and procedures for margin calls

8. Income and Corporate Actions: Treatment of dividends, interest, and other corporate actions affecting loaned securities

9. Tax Provisions: Handling of tax matters, including withholding tax and manufactured payments

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

11. Close-out and Set-off: Procedures for terminating transactions and calculating settlement amounts

12. Representations and Warranties: Standard and transaction-specific representations by both parties

13. Covenants: Ongoing obligations of the parties

14. Indemnity and Limitation of Liability: Allocation of risks and limitations on liability

15. General Provisions: Standard boilerplate provisions including notices, amendments, and governing law