ADVOKS GLOBAL · KENYA
The Capital Markets (Securities Lending, Borrowing and Short-selling) Regulations
6. Securities lending borrowing and borrowing agreement
Edition: 2022-12-31 · In force
6. Securities lending borrowing and borrowing agreement
(1)The lender and borrower in a securities lending and transaction shall enter into a lending agreement before undertaking the securities lending and borrowing transaction.(2)A lending agreement shall include—(a)detailed identification of the lender;(b)detailed identification of the borrower;(c)the securities to be lent;(d)he number of the securities to be lent;(e)the agreed value of the securities to be lent for the purposes of the transaction;(f)the term of the transaction;(g)the method of calculating the lending fee or rebate and the payment schedule of the lending fee or rebate as the case may be;(h)the nature and value of the collateral;(i)the full transfer of the title and interest in the securities to be lent;(j)the full transfer of the title and interest in the collateral to be provided;(k)the methodology for the revaluation of the collateral;(l)the person who shall be responsible for the revaluation of the collateral;(m)the margin attached to the securities lending and borrowing transaction, if any;(n)the nature and consequences of default or other failures in relation to the terms of the lending agreement;(o)the exercise of voting rights associated with the securities to be lent;(p)the exercise of voting rights associated with the collateral to be provided where the collateral is a type of security that has voting rights associated with it; and(q)the procedure for recalling or returning the lent securities.