Lending Financial Instruments Sample Clauses
The "Lending Financial Instruments" clause defines the terms under which one party temporarily transfers financial instruments, such as stocks or bonds, to another party. Typically, this arrangement requires the borrower to provide collateral and to return equivalent instruments at the end of the lending period, often with a fee or interest paid to the lender. This clause facilitates the efficient use of financial assets, enabling activities like short selling or liquidity management, while protecting the lender’s interests and minimizing counterparty risk.
Lending Financial Instruments. 12.1 You are able to give explicit consent and mandate to BUX to facilitate Lending the Financial Instruments held in Your Account to a Borrower for Your risk and Your account. It is possible to cancel Your explicit consent and mandate at any given time. When Your Financial Instruments will be Lent, You will receive a return. For more detailed information about Lending and the applicable terms and conditions, please see the BUX Stock Lending Agreement.
Lending Financial Instruments. 12.1 You hereby give consent to BUX to Lend the Financial Instruments held in Your Account. At all times BUX will be the counterparty in this respect to You and as such will have the obligation to redeliver the Financial Instruments that are Lent. For more detailed information about the Lending, please see Appendix I BUX Securities Lending Agreement to this Client Agreement.
12.2 If BUX Lends Your Financial Instruments, then no asset segregation will apply in relation to such Financial Instruments. Instead, You will have a right of redelivery against BUX. In order to mitigate the risk that BUX will not be able to redeliver the Securities that are Lent, BUX will procure that it, or an entity appointed by it for this purpose, holds collateral to the amount of at least the value of the Financial Instruments that are Lent. This enables BUX to meet its obligations towards You in all situations as much as possible.
12.3 Lending Financial Instruments does not change Your Account Value: You still hold a claim against BUX Custody as specified in the Account Value as Financial Instruments that are Lent by BUX. In reality, BUX Custody will not hold the Financial Instruments concerned at that moment but, instead, will hold (a security right on) money or other Securities as security. The Financial Instruments that are Lent will be assigned by BUX in the administration of BUX Custody to one or more specified clients on the basis of a predetermined allocation procedure.