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OSLA Anatomy™
In a Nutshell™ Clause Equivalent Securities:
Equivalent Securities means securities that are fungible with the borrowed Securities, and and certificates or documents of title. Where Securities are partly paid or have been converted, subdivided, consolidated, redeemed, made the subject of a takeover, capitalisation issue, rights issue or similar event it will mean:
- (a) For conversions, subdivisions or consolidations: the securities into which the borrowed Securities have been converted, subdivided or consolidated and any necessary notice given under Clause 4(B)(vi);
- (b) For redemptions: a sum of equivalent to the proceeds of the redemption;
- (c) For takeovers: the consideration of which the Lender has given notice to the Borrower under Clause 4(B)(vi);
- (d) For calls on partly paid securities: the paid-up securities PROVIDED THAT the Lender shall have paid to the Borrower an amount of money equal to the sum due in respect of the call;
- (e) For a capitalisation issues: the borrowed Securities and the securities allotted by way of a bonus thereon;
- (f) For rights issues: the borrowed Securities and the securities allotted thereon, as long as the Lender has given notice to the Borrower under Clause 4(B)(vi), and has paid to the Borrower all sums due;
- (g) For Income in the form of securities or an option to take Income in the form of securities: securities equivalent to those allotted;
- (h) For any similar event: the borrowed Securities or the money or securities equivalent to that received on those borrowed Securities resulting from such event;
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1995 OSLA full text of Clause Equivalent Securities:
Equivalent Securities means securities of an identical type, nominal value, description and amount to particular Securities borrowed and such term shall include the certificates and other documents of or evidencing title and transfer in respect of the foregoing (as appropriate). If and to the extent that such Securities are partly paid or have been converted, subdivided, consolidated, redeemed, made the subject of a takeover, capitalisation issue, rights issue or event similar to any of the foregoing, the expression shall have the following meaning:
- (a) in the case of conversion, subdivision or consolidation the securities into which the borrowed Securities have been converted, subdivided or consolidated PROVIDED THAT if appropriate, notice has been given in accordance with Clause 4(B)(vi);
- (b) in the case of redemption, a sum of money equivalent to the proceeds of the redemption;
- (c) in the case of takeover, a sum of money or securities, being the consideration or alternative consideration of which the Lender has given notice to the Borrower in accordance with Clause 4(B)(vi);
- (d) in the case of a call on partly paid securities, the paid-up securities PROVIDED THAT the Lender shall have paid to the Borrower an amount of money equal to the sum due in respect of the call;
- (e) in the case of a capitalisation issue, the borrowed Securities TOGETHER WITH the securities allotted by way of a bonus thereon;
- (f) in the case of a rights issue, the borrowed Securities TOGETHER WITH the securities allotted thereon, PROVIDED THAT the Lender has given notice to the Borrower in accordance with Clause 4(B)(vi), and has paid to the Borrower all and any sums due in respect thereof;
- (g) in the event that a payment or delivery of Income is made in respect of the borrowed Securities in the form of securities or a certificate which may at a future date be exchanged for securities or in the event of an option to take Income in the form of securities or a certificate which may at a future date be exchanged for securities, notice has been given to the Borrower in accordance with Clause 4(B)(vi) the borrowed Securities TOGETHER WITH securities or a certificate equivalent to those allotted;
- (h) in the case of any event similar to any of the foregoing, the borrowed Securities TOGETHER WITH or replaced by a sum of money or securities equivalent to that received in respect of such borrowed Securities resulting from such event;
For the purposes of this definition, securities are equivalent to other securities where they are of an identical type, nominal value, description and amount and such term shall include the certificate and other documents of or evidencing title and transfer in respect of the foregoing (as appropriate);
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