Security Lending Agreement Template for Qatar

The Security Lending Agreement serves as the primary legal framework for securities lending transactions in Qatar, enabling financial institutions to temporarily transfer securities while maintaining beneficial ownership. This document is essential for market participants operating under Qatar Financial Centre regulations and broader Qatari law, particularly when engaging in securities financing transactions. It addresses crucial aspects including collateral management, risk mitigation, and regulatory compliance, while potentially incorporating Shariah-compliant structures where required. The agreement is designed to protect both lenders and borrowers through detailed provisions covering operational procedures, default scenarios, and remedy mechanisms, all within the context of Qatar's legal and regulatory framework.

1. Parties: Identification of the lender and borrower, including their legal status and registration details

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Loans of Securities: Core provisions governing the lending and borrowing of securities

5. Delivery and Return of Securities: Procedures and timing for the delivery and return of loaned securities

6. Collateral Requirements: Details of required collateral, including type, amount, and maintenance requirements

7. Margin Maintenance: Procedures for calculating and maintaining margin requirements

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

9. Fees and Charges: Lending fees, charges, and payment terms

10. Tax Provisions: Tax implications and responsibilities of each party

11. Representations and Warranties: Standard representations and specific confirmations required under Qatari law

12. Events of Default: Circumstances constituting default and consequential rights

13. Termination Provisions: Conditions and procedures for termination of loans and the agreement

14. Security Interest and Set-off Rights: Rights regarding security interests and set-off

15. Dispute Resolution: Governing law, jurisdiction, and dispute resolution procedures compliant with Qatari law

16. General Provisions: Standard boilerplate clauses adapted to Qatari law requirements