tiktok³ÉÈË°æ

The Stock Borrowing Agreement is a fundamental document used in the Irish financial markets to facilitate securities lending transactions between financial institutions. It is essential when one party needs to borrow securities from another, typically for purposes such as settlement coverage, short selling, or market making activities. The agreement, governed by Irish law and compliant with EU regulations, comprehensively addresses crucial aspects including loan initiation, collateral requirements, corporate actions, and default scenarios. It incorporates specific provisions required under Irish financial services legislation and Central Bank regulations, while also aligning with international market practices. This document is particularly important in the context of Ireland's position as a significant financial services center and its role in European financial markets.

1. Parties: Identifies and defines the lender and borrower, including their registered addresses and company details

2. Background: Sets out the context of the agreement and the parties' intentions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Loans of Securities: Details the core mechanisms for borrowing securities, including initiation process and confirmation requirements

5. Delivery and Return: Specifies the procedures for delivering borrowed securities and returning them

6. Collateral: Outlines collateral requirements, acceptable forms, and maintenance obligations

7. Margin Maintenance: Details the process for calculating and maintaining margin requirements

8. Income Payments and Corporate Actions: Addresses manufactured dividends and other corporate action events

9. Tax: Covers tax obligations, withholding requirements, and gross-up provisions

10. Events of Default: Lists circumstances constituting default and consequences

11. Close-out and Set-off: Describes procedures for terminating loans and settling obligations

12. Representations and Warranties: Contains standard and specific representations by both parties

13. Indemnities: Sets out mutual indemnification obligations

14. Governing Law and Jurisdiction: Specifies Irish law as governing law and establishes jurisdiction for disputes