Stock Lending Agreement for Malta
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Stock Lending Agreement
"I need a Stock Lending Agreement governed by Maltese law for a bilateral arrangement between our bank and a prime broker, with specific provisions for cryptocurrency-backed collateral and daily electronic reporting requirements, to be implemented by March 2025."
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1. Parties: Identification of the lender and borrower, including full legal names 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 throughout the agreement and rules of interpretation
4. Loans of Securities: Core provisions governing the lending of securities, including initiation process and conditions precedent
5. Transfer of Securities and Collateral: Mechanisms and procedures for transferring securities and posting collateral
6. Collateral Requirements: Specifications for acceptable collateral, margins, and maintenance requirements
7. Rights and Obligations: Detailed responsibilities of each party during the term of each loan
8. Income and Corporate Actions: Treatment of dividends, voting rights, and other corporate actions
9. Rates and Fees: Lending fees, rates, and payment mechanisms
10. Tax Provisions: Treatment of taxes, including withholding tax and manufactured payments
11. Events of Default: Definition of default events and consequences
12. Close-out and Set-off: Procedures for terminating loans and settling obligations
13. Representations and Warranties: Standard and specific representations made by each party
14. Indemnities: Scope of indemnification obligations
15. Notices: Communication procedures and contact details
16. Governing Law and Jurisdiction: Choice of Maltese law and jurisdiction provisions
1. Agency Provisions: Required when either party acts as agent for underlying clients
2. Custody Arrangements: Needed when involving third-party custodians
3. Electronic Trading Platform: Required when transactions will be executed through specific trading platforms
4. Additional Tax Provisions: Required for cross-border arrangements or specific tax structures
5. Force Majeure: Optional provisions for extraordinary events affecting performance
6. Market Disruption: Provisions dealing with market disruption events
7. Confidentiality: Detailed confidentiality provisions if not covered in other agreements
8. Data Protection: Required when personal data processing is involved
9. Settlement Systems: Required when specific settlement systems are to be used
1. Schedule 1 - Form of Loan Confirmation: Template for confirming individual loan transactions
2. Schedule 2 - Eligible Securities: List of securities eligible for lending under the agreement
3. Schedule 3 - Eligible Collateral: Specified forms of acceptable collateral and applicable haircuts
4. Schedule 4 - Fee Schedule: Detailed breakdown of fees and calculation methodologies
5. Schedule 5 - Agency Terms: Specific terms applicable to agency arrangements if relevant
6. Schedule 6 - Contact Details: Operational and legal contacts for both parties
7. Schedule 7 - Tax Documentation: Required tax forms and documentation
8. Appendix A - Operating Procedures: Detailed operational procedures for loan initiation, maintenance, and termination
9. Appendix B - Corporate Actions Processing: Procedures for handling various corporate actions
Authors
Banking
Investment Management
Securities Trading
Asset Management
Hedge Funds
Private Equity
Institutional Investment
Financial Services
Custodial Services
Prime Brokerage
Legal
Compliance
Risk Management
Securities Trading
Operations
Settlement
Collateral Management
Documentation
Treasury
Investment Management
Regulatory Reporting
Client Services
Product Management
Securities Lending Trader
Legal Counsel
Compliance Officer
Risk Manager
Operations Manager
Portfolio Manager
Collateral Manager
Settlement Officer
Relationship Manager
Chief Investment Officer
Head of Trading
Legal Documentation Specialist
Regulatory Reporting Officer
Treasury Manager
Securities Operations Director
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