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Share Lending Agreement Template for Netherlands

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Key Requirements PROMPT example:

Share Lending Agreement

"I need a Share Lending Agreement under Dutch law for a transaction between our bank and a pension fund, with specific provisions for electronic trading platforms and automated collateral management, to be implemented by March 2025."

Document background
The Share Lending Agreement serves as the primary legal framework for securities lending transactions in the Netherlands, complying with Dutch civil law and EU financial regulations. This document is essential for financial institutions engaging in securities lending activities, whether as lenders or borrowers, and is typically used by banks, investment firms, pension funds, and insurance companies. The agreement covers crucial aspects such as transfer mechanics, collateral management, corporate actions, voting rights, and regulatory reporting requirements. It incorporates specific provisions required under Dutch law and EU regulations, particularly the Financial Collateral Arrangements Act and the Securities Financing Transactions Regulation (SFTR). The Share Lending Agreement is designed to protect both parties' interests while ensuring operational efficiency and regulatory compliance in securities lending transactions.
Suggested Sections

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

2. Background: Context of the agreement and general purpose of the share lending arrangement

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and interpretation rules

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

5. Transfer and Delivery: Procedures and requirements for transferring securities between parties

6. Collateral Arrangements: Requirements for posting and maintaining collateral, including types, valuation, and margin calls

7. Rights and Obligations: Specific rights and obligations of each party during the lending period

8. Income and Corporate Actions: Treatment of dividends, voting rights, and other corporate actions

9. Tax Provisions: Handling of tax matters, including withholding tax and manufactured dividends

10. Representations and Warranties: Standard and specific representations and warranties from each party

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

12. Termination: Provisions for termination, including both ordinary and early termination

13. Settlement and Redelivery: Procedures for settling transactions and redelivering securities

14. General Provisions: Standard contractual provisions including notices, amendments, and governing law

Optional Sections

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

2. Market Disruption: Provisions dealing with market disruption events, included for transactions in volatile markets or sensitive securities

3. Electronic Trading: Required when parties use electronic trading platforms or automated systems

4. Central Counterparty Provisions: Needed when transactions are cleared through a central counterparty

5. Buy-in Procedures: Detailed procedures for buy-in rights, included when specifically required by parties

6. Additional Tax Provisions: Required for cross-border transactions or specific tax situations

7. Sovereign Immunity: Required when dealing with sovereign entities or state-owned enterprises

Suggested Schedules

1. Schedule 1 - Eligible Securities: List of securities eligible for lending under the agreement

2. Schedule 2 - Eligible Collateral: Types of acceptable collateral and related haircuts

3. Schedule 3 - Fee Schedule: Lending fees, rates, and calculation methodologies

4. Schedule 4 - Operating Procedures: Detailed operational procedures including cut-off times and delivery instructions

5. Schedule 5 - Forms: Standard forms for loan confirmations, recall notices, and other communications

6. Schedule 6 - Contact Details: Contact information for operational and legal notices

7. Appendix A - Tax Documentation: Required tax forms and documentation

8. Appendix B - Jurisdictional Requirements: Specific requirements or modifications for Dutch law compliance

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


































































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Relevant Industries

Financial Services

Investment Banking

Asset Management

Insurance

Pension Funds

Banking

Securities Trading

Investment Management

Broker-Dealer Services

Relevant Teams

Legal

Securities Lending

Risk Management

Compliance

Operations

Trading

Portfolio Management

Collateral Management

Documentation

Investment

Transaction Management

Market Operations

Regulatory Reporting

Relevant Roles

Legal Counsel

Securities Lending Manager

Risk Manager

Compliance Officer

Operations Manager

Trading Manager

Portfolio Manager

Collateral Manager

Securities Operations Officer

Legal Director

Head of Trading

Chief Risk Officer

Investment Manager

Transaction Manager

Documentation Specialist

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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