[{"data":1,"prerenderedAt":527},["ShallowReactive",2],{"document-stock-lending-agreement-D14067":3},{"document":4,"label":21,"preview":11,"thumb":22,"thumb600":23,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":24,"breadcrumb":28,"related":34,"customDescModule":177,"customdescription":6,"mdFm":178,"mdProseHtml":526},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"STOCK LENDING AGREEMENT This Stock Lending Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [LENDER NAME] (the \" Lender\"), an individual/entity with its principal place of residence/business located at: [YOUR COMPLETE ADDRESS] AND: [BORROWER NAME] (the \" Borrower\"), an individual/entity with its principal place of residence/business located at: [COMPLETE ADDRESS] WHEREAS, the Lender is the legal owner of certain shares of stock (the \"Lent Stock\") and is willing to lend such stock to the Borrower under the terms and conditions set forth herein; WHEREAS, the Borrower desires to borrow the Lent Stock from the Lender for purposes of [PURPOSE OF BORROWING], and agrees to return such shares or equivalent as stipulated in this Agreement; NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties hereto agree as follows: LENT STOCK Lent Stock: The Lender agrees to lend the Borrower [NUMBER] shares of [COMPANY NAME] stock (the \"Lent Stock\"), which are currently registered in the Lender's name. Loan Term: The term of the loan (the \"Loan Term\") shall commence on [START DATE] and continue until [END DATE], unless terminated earlier by either Party in accordance with this Agreement. Collateral: As security for the loan of the Lent Stock, the Borrower shall provide collateral in the form of [DESCRIPTION OF COLLATERAL] valued at [VALUE]. The Lender shall retain possession of the Collateral for the duration of the Loan Term. RETURN OF STOCK 2.1 Return of Lent Stock: Upon the expiration of the Loan Term or earlier termination of this Agreement, the Borrower agrees to return the same number of shares of [COMPANY NAME] stock to the Lender, or shares of equivalent type and value if such shares are unavailable. 2.2 Failure to Return Stock: If the Borrower fails to return the Lent Stock by the agreed-upon date, the Lender reserves the right to retain or liquidate the Collateral to recover the value of the Lent Stock, including any damages or losses incurred. 2.3 Dividends and Rights: During the Loan Term, the Lender retains the right to receive any dividends, voting rights, or other distributions associated with the Lent Stock, unless otherwise agreed in writing. BORROWER'S OBLIGATIONS 3.1 Ownership and Use Restrictions: The Borrower does not obtain ownership rights to the Lent Stock. The Borrower agrees not to sell, transfer, pledge, or encumber the Lent Stock during the Loan Term. 3.2 Maintenance of Collateral: The Borrower agrees to maintain the value of the Collateral throughout the Loan Term. In the event of any depreciation or risk to the Collateral's value, the Borrower shall provide additional collateral upon the Lender's request. 3.3 Stock Substitution: If the Borrower is unable to return the specific shares of the Lent Stock, the Borrower shall substitute equivalent shares of the same class or provide equivalent compensation in cash or stock, subject to the Lender's approval. LENDER'S RIGHTS AND OBLIGATIONS 4.1 Retention of Ownership: The Lender retains full ownership of the Lent Stock throughout the Loan Term and retains all rights associated with ownership, including dividends and voting rights. 4",null,"Stock Lending Agreement","4",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/stock-lending-agreement-D14067.png","https://templates.business-in-a-box.com/imgs/250px/14067.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#14067.xml",{"title":15,"description":6},"stock lending agreement",[17,20],{"label":18,"url":19},"Legal Agreements","/templates/business-legal-agreements/",{"label":18,"url":19},"Stock Lending Agreement Template","https://templates.business-in-a-box.com/imgs/400px/14067.png","https://templates.business-in-a-box.com/imgs/600px/14067.png",[25,17,20],{"label":26,"url":27},"Templates","/templates/",[29,30,31],{"label":26,"url":27},{"label":18,"url":19},{"label":32,"url":33},"Equity & Mergers","/templates/equity-and-mergers/",[35,39,43,47,51,55,59,63,67,71,75,79,83,104,119,133,147,163],{"label":36,"url":37,"thumb":38,"extension":10},"Stock Agreement","/template/stock-agreement-D347","https://templates.business-in-a-box.com/imgs/250px/347.png",{"label":40,"url":41,"thumb":42,"extension":10},"Stock Purchase Agreement","/template/stock-purchase-agreement-D349","https://templates.business-in-a-box.com/imgs/250px/349.png",{"label":44,"url":45,"thumb":46,"extension":10},"Stock Subscription Agreement","/template/stock-subscription-agreement-D350","https://templates.business-in-a-box.com/imgs/250px/350.png",{"label":48,"url":49,"thumb":50,"extension":10},"Employee Stock Option Agreement","/template/employee-stock-option-agreement-D12613","https://templates.business-in-a-box.com/imgs/250px/12613.png",{"label":52,"url":53,"thumb":54,"extension":10},"Phantom Stock Agreement","/template/phantom-stock-agreement-D12853","https://templates.business-in-a-box.com/imgs/250px/12853.png",{"label":56,"url":57,"thumb":58,"extension":10},"Stock Redemption Agreement","/template/stock-redemption-agreement-D14068","https://templates.business-in-a-box.com/imgs/250px/14068.png",{"label":60,"url":61,"thumb":62,"extension":10},"Stock Compensation Agreement","/template/stock-compensation-agreement-D14066","https://templates.business-in-a-box.com/imgs/250px/14066.png",{"label":64,"url":65,"thumb":66,"extension":10},"Stock Transfer Agreement","/template/stock-transfer-agreement-D14069","https://templates.business-in-a-box.com/imgs/250px/14069.png",{"label":68,"url":69,"thumb":70,"extension":10},"Preferred Stock Purchase Agreement","/template/preferred-stock-purchase-agreement-D12854","https://templates.business-in-a-box.com/imgs/250px/12854.png",{"label":72,"url":73,"thumb":74,"extension":10},"Restricted Stock Purchase Agreement","/template/restricted-stock-purchase-agreement-D12855","https://templates.business-in-a-box.com/imgs/250px/12855.png",{"label":76,"url":77,"thumb":78,"extension":10},"Stock Certificate and Common Stock","/template/stock-certificate-and-common-stock-D97","https://templates.business-in-a-box.com/imgs/250px/97.png",{"label":80,"url":81,"thumb":82,"extension":10},"Assignment and Transfer of Stock Certificate","/template/assignment-and-transfer-of-stock-certificate-D323","https://templates.business-in-a-box.com/imgs/250px/323.png",{"description":84,"descriptionCustom":6,"label":85,"pages":86,"size":87,"extension":10,"preview":88,"thumb":89,"svgFrame":90,"seoMetadata":91,"parents":92,"keywords":102,"url":103},"PLEDGE OF SHARES OF STOCK This Pledge of Shares of Stock (the \"Agreement\") is made and effective the [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Pledgor\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [FIRST PLEDGEE NAME] (the \"First Pledgee\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [SECOND PLEDGEE NAME] (the \"Second Pledgee\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] BE IT KNOWN, for value received, the Pledgor hereby deposits, delivers to and pledges with Pledges of [Guaranties] as collateral security to secure the payment of the following described debt owning Pledges: [DESCRIBE] The share of stock, described as [NUMBER] shares of stock of [CORPORATION] represented as Stock Certificates [NO.]. It is further agreed that: Pledges may assign or transfer said debt and the collateral pledged hereunder to any third party. In the event a stock dividend or further issue of stock in the Corporation is issued to the Pledgor, the Pledgor shall pledge said shares as additional collateral for the debt. That during the term of this pledge agreement, and so long as it is not in default, the Pledgor shall have full rights to vote said shares and be entitled to all dividends income, except that stock dividends shall also be pledged. That during the tendency of this agreement, the Pledgor shall not issue any proxy or assignment of rights to the pledged shares. The Pledgor warrants and represents it has good title to the shares being pledge, they are free from liens and encumbrances or prior pledge, and the Pledgor has full authority to transfer said shares as collateral security. ","Pledge of Shares of Stock","3",35,"https://templates.business-in-a-box.com/imgs/1000px/pledge-of-shares-of-stock-D407.png","https://templates.business-in-a-box.com/imgs/250px/407.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#407.xml",{"title":6,"description":6},[93,96,99],{"label":94,"url":95},"Finance & Accounting","finance-accounting",{"label":97,"url":98},"Business Loans","business-loan",{"label":100,"url":101},"Guaranties & Collateral","guaranties-collateral","pledge shares stock","/template/pledge-of-shares-of-stock-D407",{"description":105,"descriptionCustom":6,"label":106,"pages":86,"size":9,"extension":10,"preview":107,"thumb":108,"svgFrame":109,"seoMetadata":110,"parents":112,"keywords":111,"url":118},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":111,"description":6},"non disclosure agreement nda",[113,115],{"label":18,"url":114},"business-legal-agreements",{"label":116,"url":117},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",{"description":120,"descriptionCustom":6,"label":121,"pages":122,"size":123,"extension":10,"preview":124,"thumb":125,"svgFrame":126,"seoMetadata":127,"parents":128,"keywords":131,"url":132},"ADHESION TO THE UNANIMOUS SHAREHOLDER AGREEMENT I, [INDIVIDUAL NAME], domiciled and residing at [FULL ADDRESS], declare that: As of today, I subscribe to [NUMBER] class [SPECIFY] shares issued from the share-capital of [COMPANY NAME]; I have examined the Unanimous Shareholders Agreement and I am satisfied of its content and acknowledge that a copy of such documents has been remitted to me;","Adhesion to the Unanimous Shareholder Agreement","1",41,"https://templates.business-in-a-box.com/imgs/1000px/adhesion-to-the-unanimous-shareholder-agreement-D848.png","https://templates.business-in-a-box.com/imgs/250px/848.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#848.xml",{"title":6,"description":6},[129,130],{"label":18,"url":114},{"label":18,"url":114},"adhesion to unanimous shareholder agreement","/template/adhesion-to-the-unanimous-shareholder-agreement-D848",{"description":134,"descriptionCustom":6,"label":135,"pages":86,"size":9,"extension":10,"preview":136,"thumb":137,"svgFrame":138,"seoMetadata":139,"parents":141,"keywords":140,"url":146},"INVESTMENT AGREEMENT This Investment Agreement (the Agreement) is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] a Company (the \"COMPANY\") organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR NAME] the principal members of the Company (the \"Company Principals\") collectively referred to in this Agreement as the \"Company Parties.\" and existing under the laws of [STATE/PROVINCE], located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] a Company (the \"COMPANY\") organized and existing under the laws of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS the Company was formed for the purpose of further developing, commercializing, and operating the business concept identified and includes any subsequent iteration of the business concept developed by the Company Parties (the \"Business\"); WHEREAS the Investor is desirous of making an investment (the \"Investment\") in the amount of [TOTAL INVESTMENT AMOUNT] into the Company to facilitate such Business. NOW THEREFORE, in consideration of the mutual covenants and agreements herein contains, the parties hereto intending to be legally bound agree as follows: THE INVESTMENT 1.1 The Investor will make the Investment in the Company in consideration for the rights and privileges set forth in this Agreement. FUTURE ISSUANCES OF SECURITIES 2.1 From and after the date of this Agreement, the parties agree to take such further action and to execute, acknowledge and deliver all such further documents as are reasonably requested by the other party for carrying out the purposes of this Agreement. 2.2 If at any time in the future, the Company proposes to sell and issue any debt or equity securities, or any other securities or instruments entitling the holder thereof to receive any profits, capital, assets or property of the Company (collectively, \"Securities\"), in a single transaction or series of related transactions that results in gross proceeds to the Company of at least [STATE AMOUNT] (a \"Qualified Financing\"), the Company shall deliver written notice to the Investor stating (i) its bona fide intention to offer such Securities, (ii) the amount and type of Securities to be offered and (iii) the price and terms upon which it proposes to offer such securities. Upon receipt of such notice, the Investor shall be entitled to exercise any of the rights specified in sections 3, 4 and 5. RIGHT OF FIRST OFFER 3.1 The Investor shall have the first right to purchase all the Securities to be offered and sold in such Qualified Financing at the price and on the same terms and conditions specified in the notice. RIGHT TO PARTICIPATE 4","Investment Agreement","https://templates.business-in-a-box.com/imgs/1000px/investment-agreement-D12831.png","https://templates.business-in-a-box.com/imgs/250px/12831.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12831.xml",{"title":140,"description":6},"investment agreement",[142,143],{"label":94,"url":95},{"label":144,"url":145},"Shareholders & Investors","shareholders-investors","/template/investment-agreement-D12831",{"description":148,"descriptionCustom":6,"label":149,"pages":86,"size":150,"extension":10,"preview":151,"thumb":152,"svgFrame":153,"seoMetadata":154,"parents":155,"keywords":161,"url":162},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[156,157,158],{"label":94,"url":95},{"label":97,"url":98},{"label":159,"url":160},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":164,"descriptionCustom":6,"label":165,"pages":166,"size":9,"extension":10,"preview":167,"thumb":168,"svgFrame":169,"seoMetadata":170,"parents":172,"keywords":171,"url":176},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2","https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":171,"description":6},"loan agreement",[173,174,175],{"label":94,"url":95},{"label":97,"url":98},{"label":97,"url":98},"/template/loan-agreement-D417",false,{"seo":179,"reviewer":191,"legal_disclaimer":195,"quick_facts":196,"at_a_glance":198,"personas":202,"variants":227,"glossary":254,"clauses":291,"how_to_fill":342,"common_mistakes":383,"faqs":408,"industries":436,"comparisons":453,"diy_vs_lawyer":467,"jurisdictions":480,"related_template_ids_curated":501,"schema":513,"classification":514},{"meta_title":180,"meta_description":181,"primary_keyword":182,"secondary_keywords":183},"Stock Lending Agreement Template (Free Word)","Free stock lending agreement template covering loan terms, collateral, fees, dividends, and recall rights. Download in Word, edit online, or export as PDF. Free Word and PDF download.","stock lending agreement template",[184,185,186,187,188,189,190],"securities lending agreement template","stock loan agreement template","share lending agreement template","stock borrowing agreement","securities lending contract","stock lending agreement free download","equity lending agreement template",{"name":192,"credential":193,"reviewed_date":194},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":197,"legal_review_recommended":195,"signature_required":195,"notarization_required":177},"advanced",{"what_it_is":199,"when_you_need_it":200,"whats_inside":201},"A Stock Lending Agreement is a legally binding contract under which a securities owner (the lender) temporarily transfers shares or other equity instruments to a borrower in exchange for collateral and a lending fee. This free Word download gives you a professionally structured template you can edit online and export as PDF — covering loan terms, collateral requirements, fee arrangements, dividend equivalents, recall rights, and default remedies in a single document.\n","Use it whenever an institutional investor, broker-dealer, or private party lends securities to facilitate short selling, arbitrage strategies, or settlement coverage. It is also required when a portfolio manager wants to generate incremental income on a long-term equity position by temporarily transferring shares to a counterparty.\n","Identification of the lender and borrower, loan commencement and term, description of loaned securities, collateral type and margin requirements, lending fee or rebate structure, manufactured dividend and corporate action provisions, recall and return rights, events of default, and governing law.\n",[203,207,211,215,219,223],{"title":204,"use_case":205,"icon_asset_id":206},"Institutional investors","Generating fee income by lending long-term equity holdings to broker-dealers","persona-investor",{"title":208,"use_case":209,"icon_asset_id":210},"Broker-dealers and prime brokers","Borrowing client or proprietary securities to cover short-sale delivery obligations","persona-broker-dealer",{"title":212,"use_case":213,"icon_asset_id":214},"Hedge fund managers","Sourcing hard-to-borrow shares for short strategies or arbitrage positions","persona-hedge-fund-manager",{"title":216,"use_case":217,"icon_asset_id":218},"Pension fund administrators","Running a securities lending program to supplement portfolio returns within mandate limits","persona-pension-fund",{"title":220,"use_case":221,"icon_asset_id":222},"Corporate treasury officers","Lending company-owned shares in affiliated entities to generate short-term yield","persona-cfo",{"title":224,"use_case":225,"icon_asset_id":226},"Private equity portfolio managers","Documenting bilateral share loans between affiliated funds or co-investors","persona-private-equity",[228,232,235,239,243,247,251],{"situation":229,"recommended_template":230,"slug":231},"Lending publicly traded equities between broker-dealer counterparties","Stock Lending Agreement (ISLA/GMSLA framework)","stock-lending-agreement-D14067",{"situation":233,"recommended_template":234,"slug":231},"Lending government bonds or fixed-income securities","Securities Lending Agreement (Fixed Income)",{"situation":236,"recommended_template":237,"slug":238},"Short-term share transfer with full title and repurchase obligation","Repurchase Agreement (Repo)","repurchase-agreement-equipment-D1153",{"situation":240,"recommended_template":241,"slug":242},"Pledging shares as collateral without transferring title","Share Pledge Agreement","share-donation-agreement-D341",{"situation":244,"recommended_template":245,"slug":246},"Transferring stock as security for a personal or business loan","Stock Pledge Agreement","pledge-of-shares-of-stock-D407",{"situation":248,"recommended_template":249,"slug":250},"Allowing an investor to borrow on margin against a brokerage account","Margin Account Agreement","agreement-to-compromise-disputed-account-D178",{"situation":252,"recommended_template":253,"slug":242},"Documenting a sale and simultaneous agreement to repurchase shares","Share Buyback Agreement",[255,258,261,264,267,270,273,276,279,282,285,288],{"term":256,"definition":257},"Securities Lending","The temporary transfer of securities from a lender to a borrower in exchange for collateral and a fee, with an obligation to return equivalent securities.",{"term":259,"definition":260},"Loaned Securities","The specific shares or equity instruments temporarily transferred to the borrower under the agreement.",{"term":262,"definition":263},"Collateral","Assets — typically cash, government bonds, or letters of credit — delivered by the borrower to the lender as security for the return of loaned securities.",{"term":265,"definition":266},"Margin Requirement","The minimum collateral value expressed as a percentage of the market value of loaned securities, typically 102–105% for domestic equities.",{"term":268,"definition":269},"Lending Fee","The annualized rate charged by the lender to the borrower for the use of the securities, expressed as a basis-point spread or a fixed percentage.",{"term":271,"definition":272},"Rebate Rate","When cash collateral is used, the interest paid by the lender back to the borrower on the deposited cash, often set below prevailing money-market rates.",{"term":274,"definition":275},"Manufactured Dividend","A payment made by the borrower to the lender that replicates any cash dividend declared on the loaned securities during the loan term.",{"term":277,"definition":278},"Recall Notice","A formal notification from the lender requiring the borrower to return the loaned securities, typically within a defined settlement window of one to three business days.",{"term":280,"definition":281},"Mark-to-Market","The daily or intraday process of revaluing loaned securities and adjusting collateral posted to maintain the required margin level.",{"term":283,"definition":284},"Event of Default","A defined trigger — such as failure to return securities, insolvency, or collateral shortfall — that entitles the non-defaulting party to close out and net all open positions.",{"term":286,"definition":287},"Close-Out Netting","The contractual right to offset all obligations between two parties upon default so that only a single net amount is owed, reducing counterparty credit exposure.",{"term":289,"definition":290},"Hard-to-Borrow","A designation for securities with limited supply in the lending market, typically commanding significantly higher fees than general collateral.",[292,297,302,307,312,317,322,327,332,337],{"name":293,"plain_english":294,"sample_language":295,"common_mistake":296},"Parties and Definitions","Identifies the lender and borrower as legal entities and defines the key terms used throughout the agreement, including loaned securities, collateral, and business day.","This Stock Lending Agreement is entered into on [DATE] between [LENDER LEGAL NAME], a [ENTITY TYPE] ('Lender'), and [BORROWER LEGAL NAME], a [ENTITY TYPE] ('Borrower'). Capitalized terms used herein have the meanings set out in Schedule 1.","Using trading names or account aliases instead of the full registered legal entity names — mismatches create enforceability gaps, particularly in insolvency proceedings where exact entity identity is scrutinized.",{"name":298,"plain_english":299,"sample_language":300,"common_mistake":301},"Loan Commencement and Term","States the date the loan begins, the scheduled end date or open-term nature, and the conditions for extension or early termination by either party.","The Loan shall commence on [DATE] and continue on an open basis until terminated by either party on [X] Business Days' written notice, unless a Fixed Term of [DATE] is specified in the relevant Loan Confirmation.","Failing to distinguish between open-term and fixed-term loans in the same master agreement — open loans require recall provisions; fixed-term loans require early-termination compensation clauses.",{"name":303,"plain_english":304,"sample_language":305,"common_mistake":306},"Description and Delivery of Loaned Securities","Specifies exactly which securities are being lent — by issuer, ISIN, quantity, and class — and the settlement mechanics and deadline for delivery.","Lender shall deliver [QUANTITY] ordinary shares of [ISSUER NAME] (ISIN: [ISIN CODE]) to Borrower's account at [CUSTODIAN] by [SETTLEMENT DATE], against receipt of Collateral as specified in Clause [X].","Describing securities by ticker symbol only rather than ISIN or CUSIP — tickers can change or be reassigned after corporate actions, creating disputes about which instrument was actually loaned.",{"name":308,"plain_english":309,"sample_language":310,"common_mistake":311},"Collateral and Margin Requirements","Sets out the type of collateral the borrower must deliver, the initial margin percentage, the daily mark-to-market obligation, and the threshold for margin calls.","Borrower shall deliver Collateral equal to [102]% of the Market Value of the Loaned Securities on the Loan Date and shall maintain that ratio daily. If the ratio falls below [100]%, Borrower shall deliver additional Collateral within [1] Business Day.","Setting a margin threshold without specifying a cure period — without a defined window to remedy a shortfall, disputes arise over whether an event of default has occurred or the borrower is still within cure.",{"name":313,"plain_english":314,"sample_language":315,"common_mistake":316},"Lending Fee and Rebate Rate","States the annualized lending fee payable by the borrower, or the rebate rate payable on cash collateral, the payment frequency, and the calculation basis.","Borrower shall pay Lender a Lending Fee of [X] basis points per annum on the daily Market Value of the Loaned Securities, payable monthly in arrears. Where Cash Collateral is provided, Lender shall pay Borrower a Rebate Rate of [BENCHMARK RATE minus X] basis points.","Pegging the rebate rate to a benchmark (e.g., SOFR, SONIA) without specifying a fallback if that benchmark is discontinued — this has caused material disputes for legacy agreements referencing LIBOR.",{"name":318,"plain_english":319,"sample_language":320,"common_mistake":321},"Manufactured Dividends and Corporate Actions","Requires the borrower to pass through to the lender all cash dividends, stock dividends, and other distributions paid on the loaned securities during the loan term, net of applicable withholding tax.","Borrower shall pay to Lender an amount equal to any cash dividend or distribution paid on the Loaned Securities on the record date during the Loan Term, within [2] Business Days of the payment date, net of withholding tax at the applicable treaty rate.","Omitting the withholding tax treatment for cross-border loans — lenders in higher-tax jurisdictions often receive manufactured dividends net of a tax that does not match the treaty rate they would have received directly, resulting in permanent tax leakage.",{"name":323,"plain_english":324,"sample_language":325,"common_mistake":326},"Recall Rights and Return of Securities","Grants the lender the right to recall loaned securities at any time on open-term loans and requires the borrower to return equivalent securities within the specified settlement period.","Lender may recall all or any part of the Loaned Securities by delivering a Recall Notice no later than [9:00 AM] on the intended settlement date. Borrower shall return equivalent Loaned Securities within [3] Business Days of receipt of a valid Recall Notice.","No contractual right to recall — common in informal bilateral arrangements. Without it, the lender cannot retrieve shares to vote at an AGM or meet a regulatory block-trade restriction, causing governance failures.",{"name":328,"plain_english":329,"sample_language":330,"common_mistake":331},"Voting Rights","Clarifies that the borrower holds voting rights during the loan term as the registered holder of the securities, and sets out any agreed mechanism for the lender to receive a recall notice ahead of a record date.","Borrower shall be entitled to exercise all voting rights attaching to the Loaned Securities during the Loan Term. Lender may recall Loaned Securities no later than [X] Business Days prior to any shareholder meeting record date if Lender wishes to exercise voting rights.","Assuming the lender retains voting rights without an explicit recall — once title passes to the borrower, votes follow the shares. Lenders who fail to recall before a record date permanently lose their vote for that meeting.",{"name":333,"plain_english":334,"sample_language":335,"common_mistake":336},"Events of Default and Close-Out","Lists specific default triggers and gives the non-defaulting party the right to terminate all open loans immediately, value all positions at market, and net obligations to a single payment.","Each of the following constitutes an Event of Default: (a) failure to return Loaned Securities within [3] Business Days of a valid Recall Notice; (b) failure to deliver or maintain Collateral; (c) insolvency, liquidation, or appointment of a receiver. Upon an Event of Default, the non-defaulting party may terminate all Loans and apply close-out netting.","Listing events of default without a netting clause — without close-out netting, the non-defaulting party must fulfill its own obligations while the defaulting party's estate cherry-picks which obligations to honor.",{"name":338,"plain_english":339,"sample_language":340,"common_mistake":341},"Governing Law and Jurisdiction","Specifies which jurisdiction's law governs the agreement and where disputes will be resolved — a court, arbitral forum, or the courts of a specified city.","This Agreement and all Loans made hereunder are governed by the laws of [ENGLAND AND WALES / STATE OF NEW YORK / OTHER JURISDICTION]. The parties irrevocably submit to the exclusive jurisdiction of the courts of [CITY / JURISDICTION] for the resolution of any dispute.","Choosing governing law without considering where each party's assets are held and enforced — a New York-law agreement may be difficult to enforce against a borrower whose assets sit in a jurisdiction that does not recognize New York judgments without a full re-litigation.",[343,348,353,358,363,368,373,378],{"step":344,"title":345,"description":346,"tip":347},1,"Enter the legal entity names and roles","Identify the lender and borrower by their full registered legal names, jurisdiction of incorporation, and principal office addresses. Confirm which party is the securities owner and which is the borrower.","Pull entity names directly from the corporate registry filing — mismatches between the agreement and registry records can void the title transfer in insolvency.",{"step":349,"title":350,"description":351,"tip":352},2,"Specify the loaned securities precisely","List each security by issuer name, ISIN or CUSIP, share class, and quantity. If the agreement is a master that will govern multiple loan transactions, note that specific securities will be identified in individual loan confirmations.","Use ISIN rather than ticker symbol — tickers change; ISINs are permanent identifiers tied to the specific security class.",{"step":354,"title":355,"description":356,"tip":357},3,"Set the collateral type and initial margin","Choose cash, government securities, or approved non-cash collateral. Set the initial margin percentage (typically 102% for domestic equities, 105% for international) and the daily mark-to-market threshold that triggers a margin call.","Non-cash collateral requires a haircut schedule — the percentage discount applied to each eligible collateral type based on its liquidity and credit quality.",{"step":359,"title":360,"description":361,"tip":362},4,"Define the lending fee or rebate rate","Enter the annualized lending fee in basis points, the payment frequency (monthly is standard), and the calculation basis (actual/360 or actual/365). For cash collateral, specify the rebate rate benchmark and spread.","For hard-to-borrow securities, negotiate the fee before execution and record it in the loan confirmation rather than the master agreement, so it can be updated without amending the contract.",{"step":364,"title":365,"description":366,"tip":367},5,"Complete the manufactured dividend and corporate action provisions","Confirm the withholding tax rate applicable to the lender's jurisdiction, the payment timeline for manufactured dividends, and how stock splits, rights issues, and mergers are handled.","For cross-border loans, confirm the applicable tax treaty rate in writing before execution — a rate dispute after a dividend payment date is difficult to resolve retroactively.",{"step":369,"title":370,"description":371,"tip":372},6,"Set recall notice periods and return mechanics","Choose the number of business days' notice required for recall (one to three is market standard) and the settlement window for the borrower's return obligation. Align these with the standard settlement cycle for the relevant market.","Build in a pre-record-date recall window — specify that the lender may deliver a recall notice at least five business days before any shareholder meeting record date to preserve voting rights.",{"step":374,"title":375,"description":376,"tip":377},7,"Define events of default and close-out netting","List all default triggers — failure to return, collateral shortfall, insolvency, regulatory action — and confirm that the netting clause covers all open loans under the master agreement.","Confirm that close-out netting is legally enforceable in both parties' jurisdictions before relying on it — several civil-law countries require specific regulatory approvals for netting to be binding in insolvency.",{"step":379,"title":380,"description":381,"tip":382},8,"Select governing law and sign before the first loan","Choose the governing law (New York law or English law are the two market standards) and the dispute-resolution forum. Both parties should sign the master agreement before any securities are transferred.","Use the ISLA Global Master Securities Lending Agreement (GMSLA) or SIFMA/ISLA Master Securities Loan Agreement (MSLA) as a baseline and adapt from there — custom drafting from scratch increases legal review time and cost significantly.",[384,388,392,396,400,404],{"mistake":385,"why_it_matters":386,"fix":387},"Omitting a recall right on open-term loans","Without a contractual recall right, the lender cannot retrieve shares to exercise voting rights at a shareholder meeting or comply with a regulatory holding requirement, creating governance failures and potential regulatory breaches.","Include an explicit recall clause with a defined notice period and settlement window, and add a specific pre-record-date recall trigger ahead of any shareholder meeting.",{"mistake":389,"why_it_matters":390,"fix":391},"Failing to specify withholding tax treatment on manufactured dividends","Cross-border loans subject manufactured dividends to source-country withholding at the standard rate rather than the applicable treaty rate, causing permanent tax leakage that erodes the net yield on the lending program.","Confirm the applicable treaty rate for each borrower jurisdiction before execution, document it in the agreement, and include a gross-up obligation if the borrower withholds at the wrong rate.",{"mistake":393,"why_it_matters":394,"fix":395},"Using a benchmark rate without a fallback provision","Rebate rates pegged to LIBOR with no fallback became unenforceable overnight when LIBOR was discontinued, forcing expensive renegotiations or leaving the rate undefined until the dispute was resolved.","Reference a current benchmark (SOFR in USD, SONIA in GBP) and include a waterfall fallback provision specifying the replacement rate if the primary benchmark is discontinued or unavailable.",{"mistake":397,"why_it_matters":398,"fix":399},"No close-out netting clause","Without close-out netting, the non-defaulting party must continue performing its own obligations while the defaulting party's insolvency administrator selectively honors only favorable positions — a process called 'cherry-picking' that can result in catastrophic losses.","Include a close-out netting clause and confirm it is legally recognized in both parties' home jurisdictions, consulting local counsel in any civil-law jurisdiction before relying on it.",{"mistake":401,"why_it_matters":402,"fix":403},"Describing loaned securities by ticker symbol only","Ticker symbols can be reassigned or changed after corporate actions such as mergers, spin-offs, or relistings, making it impossible to identify the original loaned instrument with certainty if a dispute arises later.","Always identify securities by ISIN or CUSIP in addition to the issuer name and share class — these identifiers follow the security itself through corporate actions.",{"mistake":405,"why_it_matters":406,"fix":407},"Signing after the first securities transfer","In most jurisdictions, an agreement executed after the transaction it purports to govern may lack the legal authority to retroactively impose restrictive clauses — including default remedies and collateral rights — on the pre-agreement transfer.","Execute the master agreement before any securities are delivered. If a loan must be made urgently, use a binding term sheet or email confirmation that explicitly references the forthcoming master agreement.",[409,412,415,418,421,424,427,430,433],{"question":410,"answer":411},"What is a stock lending agreement?","A stock lending agreement is a legally binding contract under which a securities owner (the lender) temporarily transfers shares or other equity instruments to a borrower in exchange for collateral and a lending fee. Unlike a sale, the borrower is obligated to return equivalent securities at the end of the loan term. The lender retains economic exposure through manufactured dividend payments and the collateral arrangement, but loses voting rights for the duration of the loan.\n",{"question":413,"answer":414},"Why do parties enter into stock lending agreements?","Lenders use stock lending to generate incremental income on long-term holdings without selling the position. Borrowers — typically broker-dealers, prime brokers, and hedge funds — use borrowed securities to cover short-sale delivery obligations, support arbitrage strategies, or facilitate market-making. The lending fee compensates the lender for the credit risk and opportunity cost of transferring title to the securities.\n",{"question":416,"answer":417},"What collateral is acceptable in a stock lending agreement?","Acceptable collateral typically includes cash (USD, GBP, EUR), government bonds (Treasuries, Gilts, Bunds), agency securities, and, in some agreements, investment-grade corporate bonds or equity securities with an approved haircut. Cash collateral is the most common form in North America; non-cash collateral (government bonds) is more prevalent in European markets. The agreement should specify eligible collateral types, haircut percentages, and concentration limits.\n",{"question":419,"answer":420},"What is the difference between a stock lending agreement and a repurchase agreement?","In a repurchase agreement (repo), a party sells securities and simultaneously agrees to buy them back at a fixed price on a future date — the economics resemble secured borrowing. In a stock lending agreement, title transfers but the borrower posts collateral and pays a fee; the lender retains economic exposure through manufactured dividends. Repos are typically used for liquidity management and fixed-income financing; stock lending is primarily used to supply securities for short selling and settlement.\n",{"question":422,"answer":423},"Does the lender lose voting rights when lending shares?","Yes. Once title to the shares passes to the borrower, the borrower becomes the registered holder and controls the voting rights for the duration of the loan. Lenders who wish to vote at a shareholder meeting must recall the securities before the record date — typically requiring notice of three to five business days. Institutional investors running lending programs often face a trade-off between fee income and governance engagement; some adopt a policy of recalling for material votes only.\n",{"question":425,"answer":426},"Are manufactured dividends taxed the same as ordinary dividends?","Not always. Manufactured dividends are contractual payments that replicate the economic value of a dividend, but their tax treatment differs by jurisdiction. In many countries, manufactured dividends do not qualify for the same reduced withholding tax rates available under bilateral tax treaties that apply to direct dividends. Cross-border stock lending programs should confirm the applicable withholding treatment with tax counsel before execution, as the difference can materially affect the net yield.\n",{"question":428,"answer":429},"Is a stock lending agreement legally enforceable?","A properly executed stock lending agreement is generally enforceable as a binding contract in most common-law and civil-law jurisdictions when it includes offer, acceptance, and consideration. However, enforceability of specific provisions — particularly close-out netting and collateral enforcement — varies by jurisdiction. In some civil-law countries, netting is enforceable only under a recognized master agreement framework (such as the GMSLA) and may require regulatory recognition. Legal review is strongly recommended for cross-border arrangements or where insolvency scenarios are a material concern.\n",{"question":431,"answer":432},"What is the GMSLA and should my agreement follow it?","The Global Master Securities Lending Agreement (GMSLA), published by the International Securities Lending Association (ISLA), is the industry-standard master agreement for cross-border equity and bond lending. In North America, the SIFMA/ISLA Master Securities Loan Agreement (MSLA) serves a similar function. Using these frameworks provides legal certainty, market familiarity, and recognized close-out netting opinions in over 60 jurisdictions. For bilateral or proprietary arrangements, adapting from the GMSLA baseline is significantly faster and safer than drafting from scratch.\n",{"question":434,"answer":435},"What happens if the borrower defaults and cannot return the securities?","If the borrower defaults, the lender is entitled to enforce its collateral rights — selling or applying the posted collateral to purchase equivalent securities in the market or satisfy the outstanding obligation. Under a close-out netting clause, all open loans are terminated simultaneously, positions are valued at current market prices, and a single net payment is calculated. Without close-out netting, the lender must pursue each defaulted loan separately through insolvency proceedings, which is significantly slower and less certain.\n",[437,441,445,449],{"industry":438,"icon_asset_id":439,"specifics":440},"Asset Management","industry-asset-management","Pension funds, mutual funds, and ETF managers run systematic lending programs to generate basis-point returns on large, stable equity positions without altering their investment mandate.",{"industry":442,"icon_asset_id":443,"specifics":444},"Financial Services / Prime Brokerage","industry-fintech","Prime brokers intermediate stock lending at scale, borrowing securities from custodian banks and institutional lenders to supply hedge fund clients covering short positions across global markets.",{"industry":446,"icon_asset_id":447,"specifics":448},"Investment Banking","industry-investment-banking","Equity finance desks use stock lending to support block trades, equity swaps, and convertible bond hedges, requiring precise recall and delivery mechanics tied to settlement deadlines.",{"industry":450,"icon_asset_id":451,"specifics":452},"Insurance","industry-insurance","Insurance companies lend portions of their general account equity portfolios under strict regulatory parameters, requiring collateral eligibility schedules aligned with local solvency frameworks such as Solvency II or RBC rules.",[454,457,460,463],{"vs":241,"vs_template_id":455,"summary":456},"stock-pledge-agreement-D13620","A share pledge agreement uses shares as collateral for a loan without transferring title — the pledgor retains ownership and voting rights unless the borrower defaults and enforces the pledge. A stock lending agreement transfers full title to the borrower in exchange for collateral and a fee. Pledges are used for secured financing; stock lending is used for short selling and yield enhancement.",{"vs":237,"vs_template_id":458,"summary":459},"D{REPO_AGREEMENT_ID}","A repo is economically equivalent to secured borrowing — one party sells securities and agrees to buy them back at a fixed price, embedding interest in the price differential. A stock lending agreement transfers title in exchange for collateral and an explicit fee, with the borrower returning equivalent securities at the end of the term. Repos dominate fixed-income markets; stock lending is the primary mechanism for equity short selling.",{"vs":249,"vs_template_id":461,"summary":462},"D{MARGIN_ACCOUNT_ID}","A margin account agreement governs a broker's right to lend a retail or institutional client's securities held on margin, often under a general customer agreement. A standalone stock lending agreement is a bilateral negotiated contract between two counterparties with specific fee terms, collateral schedules, and recall provisions. Institutional lenders need a dedicated stock lending agreement; retail margin lending is covered by the brokerage customer agreement.",{"vs":464,"vs_template_id":465,"summary":466},"Securities Purchase Agreement","D{SECURITIES_PURCHASE_ID}","A securities purchase agreement permanently transfers ownership of shares from seller to buyer for a fixed price with no return obligation. A stock lending agreement transfers title temporarily with a contractual obligation to return equivalent securities and pay a lending fee. If the goal is outright acquisition of shares, use a purchase agreement; if the goal is temporary access to securities for short selling or settlement, use a stock lending agreement.",{"use_template":468,"template_plus_review":472,"custom_drafted":476},{"best_for":469,"cost":470,"time":471},"Straightforward bilateral equity lending between two domestic counterparties with standard collateral and fee terms","Free","1–2 hours",{"best_for":473,"cost":474,"time":475},"Domestic institutional programs, broker-dealer arrangements, or first-time lending agreements where collateral and default provisions need verification","$500–$1,500","2–5 days",{"best_for":477,"cost":478,"time":479},"Cross-border lending programs, GMSLA/MSLA adaptation, regulated entities (pension funds, insurance companies), or complex collateral and netting structures","$3,000–$15,000+","2–6 weeks",[481,486,491,496],{"code":482,"name":483,"flag_asset_id":484,"note":485},"us","United States","flag-us","Stock lending in the US is primarily governed by the SIFMA/ISLA Master Securities Loan Agreement (MSLA). The SEC's Regulation T and FINRA Rule 4330 govern broker-dealer securities lending programs. Close-out netting is recognized under the Bankruptcy Code's safe-harbor provisions for securities contracts (11 U.S.C. §§ 555–562), providing strong protection in counterparty insolvency. State UCC Article 8 governs title transfer and collateral rights for securities held through intermediaries.",{"code":487,"name":488,"flag_asset_id":489,"note":490},"ca","Canada","flag-ca","Securities lending in Canada follows the ISLA GMSLA framework adapted for Canadian law. IIROC (now CIRO) rules govern broker-dealer lending programs, and provincial securities legislation applies to registered dealers and advisers. Close-out netting is enforceable under the Payment Clearing and Settlement Act for designated netting systems. Manufactured dividends receive favorable treatment under the Income Tax Act when paid between arm's-length Canadian entities, but cross-border withholding must be analyzed under the applicable tax treaty.",{"code":492,"name":493,"flag_asset_id":494,"note":495},"uk","United Kingdom","flag-uk","English law governs the majority of global stock lending under the ISLA GMSLA (2010 and 2018 versions), and English courts have a well-developed body of case law supporting close-out netting. The FCA's Client Assets Sourcebook (CASS) imposes strict rules on FCA-regulated firms lending client securities, including enhanced disclosure and consent requirements. Post-Brexit, UK and EU netting opinions must be obtained separately for cross-border arrangements.",{"code":497,"name":498,"flag_asset_id":499,"note":500},"eu","European Union","flag-eu","The EU Securities Financing Transactions Regulation (SFTR) requires both counterparties to report stock lending transactions to a registered trade repository within one business day, with detailed data fields covering collateral, fees, and tenor. EMIR close-out netting opinions are required for EU-domiciled entities. Member state insolvency law varies significantly — French and German law provide strong netting recognition, while some other jurisdictions require specific contractual structures to achieve equivalent protection. GDPR considerations apply to any personal data processed in connection with individual account holders.",[246,502,503,504,505,506,507,508,509,510,511,512],"non-disclosure-agreement-nda-D12692","adhesion-to-the-unanimous-shareholder-agreement-D848","investment-agreement-D12831","promissory-note-D434","loan-agreement-D417","purchase-agreement-D12670","limited-partnership-agreement-D891","term-sheet-D473","security-agreement-D915","joint-venture-agreement-D889","indemnification-agreement-D13016",{"emit_how_to":195,"emit_defined_term":195},{"primary_folder":114,"secondary_folder":515,"document_type":516,"industry":517,"business_stage":518,"tags":519,"confidence":525},"equity-and-mergers","agreement","finance-and-insurance","all-stages",[520,521,522,523,524],"equity","stock-lending","securities","collateral","lending-fee",0.85,"\u003Ch2>What is a Stock Lending Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Stock Lending Agreement\u003C/strong> is a legally binding contract under which a securities owner — the lender — temporarily transfers shares or other equity instruments to a borrower in exchange for collateral and a lending fee, with the borrower contractually obligated to return equivalent securities at the end of the loan term. Unlike an outright sale, title reverts to the lender at maturity; in the interim, the borrower posts collateral equal to or greater than the market value of the loaned shares, and the lender receives manufactured dividend payments replicating any distributions declared during the loan period. The agreement governs every dimension of this relationship: the precise securities lent, the collateral type and margin requirements, the fee or rebate structure, corporate action handling, recall rights, and the remedies available to each party upon default.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Operating a securities lending arrangement without a written agreement exposes both parties to serious and concrete risks. Without a recall right documented in writing, a lender cannot retrieve shares in time to vote at a shareholder meeting — votes are lost permanently, not recoverable after the record date. Without a close-out netting clause, a lender whose borrower becomes insolvent must pursue each defaulted loan individually through bankruptcy proceedings while the administrator selectively honors only favorable obligations. Without clear collateral and margin-call provisions, a collateral shortfall during a volatile market session can go unresolved for days, leaving the lender exposed to uncollateralized credit risk. Manufactured dividend disputes — especially in cross-border arrangements where withholding tax rates differ — generate some of the most expensive post-trade litigation in securities finance. A properly executed Stock Lending Agreement eliminates each of these exposures by fixing every material term before the first share is transferred, giving both parties a single enforceable document to rely on if conditions change.\u003C/p>\n",1781186002136]