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Security Lending Agreement Template for Ireland

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Key Requirements PROMPT example:

Security Lending Agreement

"I need a Securities Lending Agreement under Irish law for a bilateral arrangement between our investment bank and a pension fund, focusing on European equities lending with cash collateral only, to be implemented by March 2025."

Document background
The Securities Lending Agreement is essential for financial institutions engaging in securities lending transactions within the Irish jurisdiction. It is designed to facilitate the temporary transfer of securities while ensuring proper collateral management and risk mitigation. This agreement type is particularly crucial for financial institutions seeking to generate additional revenue from their securities holdings or requiring specific securities for trading strategies. The document incorporates provisions compliant with Irish financial regulations and relevant EU directives, including the European Union (Financial Collateral Arrangements) Regulations 2010 and MiFID II requirements. It addresses key aspects such as loan initiation, collateral management, corporate actions, voting rights, and default scenarios, while providing flexibility to accommodate various types of securities and collateral arrangements.
Suggested Sections

1. Parties: Identification of the lender and borrower, including their registered addresses and company details

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

3. Definitions: Comprehensive list of defined terms used throughout the agreement

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

5. Delivery of Securities: Procedures and timing for the delivery of securities between parties

6. Collateral: Requirements for posting collateral, including types, valuation, and maintenance

7. Marking to Market: Procedures for daily valuation of loaned securities and collateral

8. Redelivery of Securities: Terms and conditions for returning borrowed securities

9. Rights and Remedies: Legal rights and remedies available to parties in various circumstances

10. Tax and Stamp Duty: Treatment of taxes, including manufactured payments and stamp duty obligations

11. Interest on Cash Collateral: Calculation and payment of interest on cash collateral

12. Representations and Warranties: Standard representations and warranties given by each party

13. Covenants: Ongoing obligations of the parties during the agreement

14. Events of Default: Circumstances constituting default and consequences

15. Termination: Provisions for termination of the agreement and individual transactions

16. Set-off: Rights of set-off between parties

17. Notices: Requirements for formal communications between parties

18. Governing Law and Jurisdiction: Specification of Irish law as governing law and jurisdiction provisions

Optional Sections

1. Agency Provisions: Required when either party acts as agent for underlying principals

2. Additional Tax Representations: Used when parties have specific tax status or requirements

3. Electronic Trading: Include when parties agree to conduct transactions through electronic platforms

4. Central Counterparty Provisions: Required when transactions will be cleared through a CCP

5. Non-Standard Collateral Arrangements: Used when parties agree to accept non-standard forms of collateral

6. Automatic Early Termination: Optional provision for automatic termination upon certain insolvency events

7. Mini Close-Out: Provisions for dealing with fails on individual transactions rather than full termination

8. Force Majeure: Specific provisions for handling extraordinary events affecting performance

Suggested Schedules

1. Schedule A - Agency Terms: Detailed terms applicable to agency transactions

2. Schedule B - Terms and Conditions for Stock Exchanges: Specific requirements for different stock exchanges and trading venues

3. Schedule C - Required Documentation: List of required documentation and forms for transactions

4. Schedule D - Eligible Securities: List of securities eligible for lending under the agreement

5. Schedule E - Eligible Collateral: Specified types of acceptable collateral and applicable haircuts

6. Schedule F - Contact Details: Administrative and operational contact information for both parties

7. Appendix 1 - Form of Loan Confirmation: Standard form for confirming individual loan transactions

8. Appendix 2 - Form of Recall Notice: Standard form for recalling loaned securities

9. Appendix 3 - Tax Documentation: Required tax forms and documentation

10. Appendix 4 - Fee Schedule: Details of lending fees, rates, and other charges

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Financial Services

Banking

Investment Management

Securities Trading

Asset Management

Capital Markets

Insurance

Pension Funds

Wealth Management

Investment Banking

Relevant Teams

Legal

Compliance

Risk Management

Trading Operations

Securities Operations

Collateral Management

Portfolio Management

Treasury

Investment

Regulatory Reporting

Trade Settlement

Corporate Actions

Client Services

Financial Control

Relevant Roles

Securities Lending Manager

Legal Counsel

Compliance Officer

Risk Manager

Trading Operations Manager

Collateral Manager

Portfolio Manager

Securities Operations Officer

Investment Director

Treasury Manager

Financial Controller

Regulatory Reporting Officer

Trade Settlement Officer

Securities Services Director

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

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