Securities on Loan Clause Samples
The 'Securities on Loan' clause defines the terms under which securities are temporarily transferred from one party (the lender) to another (the borrower), typically in exchange for collateral. This clause outlines the types of securities eligible for lending, the duration of the loan, and the obligations of both parties regarding the return of the securities and the handling of dividends or interest during the loan period. Its core function is to facilitate the temporary transfer of securities while protecting the interests of both parties, ensuring that the lender can reclaim their assets and that the borrower meets all agreed-upon conditions.
Securities on Loan. Asset servicing is not generally performed for securities on loan unless otherwise noted in this Agreement or agreed by the Parties in writing. Provision of such services with respect to securities on loan may be covered by a separate securities lending or services agreement.