Loans of Securities - OSLA Provision

1995 Overseas Securities Lender’s Agreement A Jolly Contrarian owner’s manual™ Resources and navigation 2010 GMSLA: Full wikitext · Nutshell wikitext | GMLSA legal code | GMSLA Netting Pledge GMSLA: Hard copy (ISLA) · Full wikitext · Nutshell wikitext | 1995 OSLA: OSLA wikitext | OSLA in a nutshell | GMSLA/PGMSLA/OSLA clause comparison table From Our Friends On The Internet: Guide to equity finance | ISLA’s guide to securities lending for regulators and policy makers Navigation: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Index: Click ᐅ to expand: OSLA GMSLA Clause 2 in a Nutshell™ Use at your own risk, campers! 2. Loans of Securities 2(A) The Lender may lend Securities to the Borrower under this Agreement and the Rules, by accepting a Borrowing Request. 2(B) The Borrower may reduce the amount of Securities subject to a Borrowing Request by giving the Lender notice by midday in London two Business Days before the Settlement Date, if the Lender accepts the reduction. view template Full text of Clause 2 2. Loans of Securities 2(A) The Lender will lend Securities to the Borrower, and the Borrower will borrow Securities from the Lender in accordance with the terms and conditions of this Agreement and with the Rules PROVIDED ALWAYS THAT the Lender shall have received from the Borrower and accepted (by whatever means) a Borrowing Request. 2(B) The Borrower has the right to reduce the amount of Securities referred to in a Borrowing Request PROVIDED THAT the Borrower has notified the Lender of such reduction no later than midday London time on the day which is two Business Days prior to the Settlement Date unless otherwise agreed between the Parties and the Lender shall have accepted such reduction (by whatever means). view template Related agreements and comparisons Related agreements: Click here for the equivalent clause in the 2010 GMSLA Comparison: Template:Osladiff 2 Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

Content and comparisons

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Summary

Pity the poor trees that died to carry this meaningless piece of information. The parties can agree to enter Loans, and then agree to adjust the total value of a Loan before the Settlement Date. Gee, whizz.

It almost seems sensible in its original legalese — if you are in a rush — though, as with all such meandering circularities, an experienced draftsperson will sense instinctively that something is amiss — but in the nutshell version pulls down its knickers and exposes to the whole world just how pointless it is.

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See also

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