Lender’s right to call for redelivery of Equivalent Securities - OSLA Provision

OSLA Anatomy™ →Go uptown In a Nutshell™ Clause 7(B): 7(B) Subject to Clause 8 and the terms of the Borrowing Request the Lender may call for redelivery of Equivalent Securities at any time by giving notice on any Business Day of not less than the standard settlement time for such Equivalent Securities. The Borrower must redeliver Equivalent Securities as the Lender directs by the expiry of its notice, and simultaneously the Lender must repay or redeliver equivalent Collateral. view template 1995 OSLA full text of Clause 7(B): 7(B) Subject to Clause 8 hereof and the terms of the relevant Borrowing Request the Lender may call for the redelivery of all or any Equivalent Securities at any time by giving notice on any Business Day of not less than the standard settlement time for such Equivalent Securities on the exchange or in the clearing organisation through which the relevant borrowed Securities were originally delivered. The Borrower shall as hereinafter provided redeliver such Equivalent Securities not later than the expiry of such notice in accordance with the Lender's instructions. Simultaneously with the redelivery of the Equivalent Securities in accordance with such call, the Lender shall (subject to Clause 6(I), if applicable) repay any Cash Collateral and redeliver to the Borrower Collateral equivalent to the Collateral delivered pursuant to Clause 6 in respect of the borrowed Securities. For the avoidance of doubt any reference herein or in any other agreement or communication between the Parties (however expressed) to an obligation to redeliver or account for or act in relation to Collateral shall accordingly be construed as a reference to an obligation to redeliver or account for or act in relation to Equivalent Collateral. view template 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 2010 GMSLA 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 · 27 · Schedule · Agency Annex · Addendum for Pooled Principal Agency Loans 2018 Pledge GMSLA 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 · 27 · 28 · Schedule · Agency Annex Stock lending agreement comparison: Includes navigation for the 2000 GMSLA and the 1995 OSLA Index: Click ᐅ to expand: GMSLA Pledge GMSLA OSLA 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.

Standard settlement time

Standard settlement time is not defined in the 1995 OSLA but it is worth mentioning that, having recalled a loan, the Lender must allow at least a standard settlement cycle to get the securities back.

Which stands to reason, if you think about it. A Borrower who decides to terminate a loan can send them back immediately - it being harder (but, in my experience, not impossible) to take yourself by surprise.

Clause comparison

The equivalent of this clause in the 2010 GMSLA is 8.1

See also

• The equivalent 8.1 in the 2010 GMSLA
• Standard Settlement Cycle in the world of equity derivatives.