Securities Lending Agreement Svenska
Yes, yes. Swedish law allows parties to resolve their disputes outside Sweden. Parties can freely choose the forum. If the agreement is exclusive, it will cede Swedish jurisdiction, at least if a foreign court agrees to hear the case. When a party is a smaller party, for example a worker or a consumer. B, a jurisdiction clause (i.e. a judicial procedure agreement) that restricts that party`s access to Swedish courts is violated, at least if the presentation of a foreign court leads to the application of a foreign right less favourable to the worker or consumer than Swedish law. The following graph shows what happens in the case of a typical securities loan. Borrowing A is lent to the borrower who provides liquidity. Next, the cash security received is repaid or “reinvested” in exchange for security of securities with the borrower.
If Loan A is returned to the lender, all other parts of the transaction are cancelled and the borrower also pays the agreed fee in cash to the lender. Swedish law does not recognize the concept of a general security agreement covering all or almost all of a security provider`s assets. The starting point is that separate collateral agreements must be entered into for separate assets or separate asset types. The stock guarantee is one of the most common security interests in Sweden and is justified by a deposit agreement. The conditions of perfection for pawning shares depend on whether the shares are represented by certificates of physical actions or whether the shares are dematerialized (i.e. in the form of a register). Certificates of physical action must be given to the guaranteed party or to a third party representing the insured party, while dematerialized shares are usually pledged by registering accounts with the central custodian, as stated in the Swedish Law on the Financial Instrument (Accounts). When the dematerialized shares are held on a deposit, the security on the shares is perfected by the notification of the custodian designated for the custodian. Where the deposit contract has an execution clause, the creditor is free to apply the guarantee in accordance with the regulations provided by this enforcement clause.
Otherwise, the creditor may apply for execution (provided it has an enforceable title) from the Swedish management body. The procedure is governed by the enforcement law. Sometimes security is only required temporarily, whether for a single day or a few weeks. If so, it is often cheaper, faster and/or less risky to borrow security than to buy it directly. There are a number of reasons to temporarily hold securities: yes. Foreign awards on the basis of an arbitration agreement are recognized and applied in Sweden. In 1972, Sweden ratified the New York Convention without reservation. Its provisions were introduced into Swedish law by the Swedish Arbitration Act. For more information, please see questions 7.2 and 7.3.
The main legal issues to be considered when lending to Swedish companies and acquiring guarantees on Swedish assets were discussed above.