Security Lending Agreement Template for Netherlands

The Securities Lending Agreement serves as the primary contractual framework for financial institutions engaging in securities lending transactions under Dutch law. This document is essential when parties wish to establish a recurring lending relationship where securities are temporarily transferred from lender to borrower against collateral. The agreement incorporates requirements from Dutch financial regulations, including the Financial Supervision Act (Wft) and the Financial Collateral Arrangements Act, while also adhering to EU regulations such as SFTR. It details operational procedures, risk management requirements, and legal safeguards necessary for securities lending activities in the Dutch market. The agreement is typically used by financial institutions, investment firms, and asset managers operating in or from the Netherlands, providing them with a robust legal framework for their securities lending operations.

1. Parties: Identification of the lender and borrower, including their legal status and registered addresses

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

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

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

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

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

7. Marking to Market: Procedures for daily valuation of loaned securities and collateral, including margin calls

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

9. Tax: Provisions dealing with tax implications, withholding requirements, and tax-related indemnities

10. Fees and Charges: Lending fees, payment terms, and other charges applicable under the agreement

11. Representations and Warranties: Standard and specific representations and warranties given by each party

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

13. Termination: Provisions for termination of the agreement and individual loans, including close-out procedures

14. Set-off Rights: Rights of set-off between the parties and conditions for their exercise

15. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction for disputes