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OSLA Anatomy™
In a Nutshell™ Clause Recital:
WHEREAS:
1. The Parties want to make arrangements under which one (the Lender) will make Securities available to the other (the Borrower) from time to time so the Borrower can sell them to someone else, so that someone else can sell them to someone else, who in turn can sell them — and so on and so on you get the picture — or — hell, I don’t know — for other purposes too.
2. All transactions carried out under this Agreement will be effected in accordance with applicable Rules and market practices.
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1995 OSLA full text of Clause Recital:
WHEREAS:
1. The Parties hereto are desirous of agreeing a procedure whereby either one of them (the Lender) will make available to the other of them (the Borrower) from time to time Securities (as hereinafter defined) in order to enable the Borrower, subject to any Inland Revenue provisions then in force, to fulfil a contract to sell such Securities or to on-lend such Securities to a third party to enable such party to fulfil a contract to sell such Securities, whether or not as part of a chain of arrangements to enable the final party in such chain to fulfil a contract to sell such Securities or to replace an existing loan of Securities to such third party, or for other purposes.
2. All transactions carried out under this Agreement will be effected in accordance with the Rules (as hereinafter defined) TOGETHER WITH current market practices, customs and conventions.
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Holy mother of God whoever the poor sod was who drafted this must have been in the final, hallucinogenic grip of dengue fever or something. It looks like he died horribly. Curiously, it may be intended to convey some legal effect (in that, unlike headings, it isn’t expressly forbidden from having one by Clause 1(B), but what in the good Lord’s name it was we may never know.