ADVOKS GLOBAL · KENYA
The Capital Markets (Securities Lending, Borrowing and Short-selling) Regulations
9. Other use of collateral
Edition: 2022-12-31 · In force
9. Other use of collateral
(1)The collateral provided by the borrower in a securities lending and borrowing transaction may be used by the lender as follows—(a)in the case of cash, it may be deposited in an interest bearing account;(b)in the case of Government securities, it may be used in overnight repo transactions; or in any other case, it may be used as the Authority may prescribe.(2)The primary regulator of the borrower or lender may also impose additional restrictions on the use of the collateral held by a lender of securities.(3)The lender in a securities lending and borrowing transaction may appoint, in writing, a lending agent to manage the collateral provided by the borrower and shall specify, at the time of appointment, the uses to which the collateral may be put by the agent.