Stock Loan Agreement Template for Denmark

The Stock Loan Agreement is a fundamental document used in securities financing transactions under Danish law, enabling market participants to temporarily transfer securities while maintaining economic benefits of ownership. This agreement is essential for various market activities including short selling, settlement coverage, and market making. The document incorporates specific Danish regulatory requirements, particularly those under the Danish Capital Markets Act and Securities Trading Act, and includes detailed provisions for collateral arrangements, income payments, corporate actions, and default scenarios. The agreement is typically used by financial institutions, investment firms, and institutional investors engaging in securities lending within the Danish market or cross-border transactions involving Danish securities or counterparties.

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

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

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

4. Loans of Securities: Core provisions governing the lending and borrowing of securities, including initiation process and confirmation requirements

5. Delivery of Securities: Procedures and requirements for the delivery of securities between parties

6. Collateral Requirements: Provisions regarding the posting, maintenance, and return of collateral

7. Rights and Obligations: Specific rights and obligations of both parties during the term of any loan

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

9. Margin Maintenance: Requirements and procedures for maintaining agreed margin levels

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

11. Termination Provisions: Procedures and requirements for terminating individual loans and the agreement

12. Tax Provisions: Treatment of tax matters, including withholding tax and manufactured payments

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

14. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes