Stock Loan Agreement Template for Netherlands

The Stock Loan Agreement serves as the primary legal framework for securities lending transactions in the Netherlands, enabling financial institutions to temporarily transfer securities while maintaining economic exposure. This document is essential for various business purposes, including short selling coverage, yield enhancement, and market making activities. The agreement must comply with Dutch financial regulations, particularly the Financial Supervision Act (Wft) and relevant EU regulations implemented in Dutch law. It typically includes detailed provisions for collateral management, corporate actions, voting rights, and manufactured payments. The Stock Loan Agreement is particularly important in the Dutch market given the Netherlands' significant role in European financial markets and its sophisticated financial services sector.

1. Parties: Identification of the lender and borrower, including registration details as required under Dutch law

2. Background: Context of the agreement and general purpose of the stock 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 initiation process and confirmation requirements

5. Transfer of Securities and Collateral: Mechanics and timing of securities transfers and collateral delivery

6. Collateral Requirements: Details of required collateral, maintenance, and margin requirements

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

8. Rates and Fees: Lending fees, rates, and payment mechanisms

9. Tax Matters: Treatment of tax obligations and manufactured payments

10. Representations and Warranties: Standard and transaction-specific representations by both parties

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

12. Termination and Close-out: Provisions for termination and settlement of obligations

13. Set-off Rights: Rights of set-off between parties

14. Notices: Communication requirements and contact details

15. Governing Law and Jurisdiction: Dutch law as governing law and jurisdiction provisions