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The Master Securities Loan Agreement (MSLA) is a fundamental document used in the Nigerian financial markets to facilitate securities lending transactions between institutional parties. This agreement is essential when parties plan to engage in ongoing securities lending activities and need a standardized framework that complies with Nigerian regulatory requirements. The document incorporates specific provisions required by the Nigerian Securities and Exchange Commission, the Central Bank of Nigeria, and other relevant regulatory bodies. It is particularly important in the Nigerian context where securities lending is growing as a market practice, requiring careful consideration of local market conditions, regulatory requirements, and risk management practices. The agreement typically serves as an umbrella agreement under which multiple securities lending transactions can be executed, providing efficiency and consistency in documentation while ensuring compliance with Nigerian law.

1. Parties: Identification of the lender and borrower, including full legal names, registration details, and addresses

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Comprehensive definitions of terms used throughout the agreement

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

5. Transfer of Securities: Procedures and requirements for the transfer of securities between parties

6. Collateral Requirements: Specifications for collateral posting, maintenance, and margin requirements

7. Distributions and Corporate Actions: Handling of dividends, rights issues, and other corporate actions affecting loaned securities

8. Mark to Market: Procedures for daily valuation of loaned securities and collateral

9. Fees and Charges: Lending fees, transaction costs, and other applicable charges

10. Tax Provisions: Treatment of taxes, including withholding tax obligations

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

12. Termination: Conditions and procedures for termination of loans and the agreement

13. Representations and Warranties: Standard representations and warranties from both parties

14. Indemnification: Mutual indemnification obligations

15. Dispute Resolution: Procedures for resolving disputes between parties

16. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction