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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."
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
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
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
Financial Services
Banking
Investment Management
Securities Trading
Asset Management
Capital Markets
Insurance
Pension Funds
Wealth Management
Investment Banking
Legal
Compliance
Risk Management
Trading Operations
Securities Operations
Collateral Management
Portfolio Management
Treasury
Investment
Regulatory Reporting
Trade Settlement
Corporate Actions
Client Services
Financial Control
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
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