Common use of Distributions on Loaned Securities Clause in Contracts

Distributions on Loaned Securities. (a) Except as provided in the next sentence, all interest, dividends, and other distributions paid with respect to loaned Securities shall be credited to the Lender’s Account on the date such amounts are delivered by the Borrower to the Bank. Any non-cash distribution on loaned Securities which is in the nature of a stock split or a stock dividend shall be added to the applicable loan (and shall be considered to constitute loaned Securities) as of the date such non-cash distribution is received by the Borrower, provided that the Lender may, by giving the Bank ten (10) business days’ notice prior to the date of such non-cash distribution, direct the Bank to request that the Borrower deliver such non-cash distribution to the Bank, pursuant to the applicable Securities Borrowing Agreement, in which case the Bank shall credit such non-cash distribution to the Lender’s Account on the date it is delivered to the Bank. (b) The Lender acknowledges that (i) it will not be entitled to participate in any dividend reinvestment program or to vote with respect to Securities on loan on the applicable record date for such Securities, (ii) any payments of distributions from Borrower to the Lender are in substitution for the interest or dividend accrued or paid in respect of the loaned Securities and the tax and accounting treatment of such payment may differ from the tax and accoutning treatment of such interest or dividend, (iii) if any installment, call or rights issue becomes payable on or in respect of any loaned Securities, the Bank shall use reasonable efforts to comply with timely instructions from the Lender, provided that the Bank shall not be required to make any payment unless the Lender has first provided the Bank with funds to make such payment, and (iv) the Lender may be required to accept cash in lieu of fractional Securities Lending Agrmt 6 July 2012 shares in all instances in which an issuer does not issue fractional shares.