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The Stock Lending Agreement is a crucial document in Nigerian financial markets that facilitates the temporary transfer of securities between financial institutions. It is used when one party (the lender) agrees to temporarily transfer securities to another party (the borrower) in exchange for collateral and fees. The agreement must comply with the Investment and Securities Act 2007, SEC Rules and Regulations, and Nigerian Stock Exchange requirements. This document is essential for market making, short selling, settlement coverage, and other financial market activities in Nigeria. The Stock Lending Agreement includes detailed provisions for collateral management, corporate actions, dividend treatments, and default scenarios, while incorporating specific Nigerian regulatory requirements and market practices.

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

2. Background: Context of the agreement and relationship between parties

3. Definitions and Interpretation: Key terms used in the agreement and rules of interpretation

4. Loans of Securities: Core provisions governing the lending of securities, including loan procedures and requirements

5. Delivery of Securities: Procedures and timing for delivery of securities between parties

6. Collateral Requirements: Details of required collateral, maintenance, and valuation methods

7. Margin Maintenance: Procedures for maintaining required margin levels and margin calls

8. Rights and Obligations: Specific rights and obligations of each party during the lending period

9. Income and Corporate Actions: Treatment of dividends, rights issues, and other corporate actions

10. Fees and Charges: Lending fees, transaction costs, and payment terms

11. Tax Provisions: Tax obligations and responsibilities of each party

12. Events of Default: Circumstances constituting default and consequences

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

14. Representations and Warranties: Standard representations and warranties by both parties

15. Regulatory Compliance: Compliance with Nigerian securities laws and SEC requirements

16. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction provisions