This stock lending agreement template has 4 pages and is a MS Word file type listed under our legal agreements documents.
Sample of our stock lending agreement template:
STOCK LENDING AGREEMENT This Stock Lending Agreement (the "Agreement") is effective [DATE], BETWEEN: [LENDER NAME] (the " Lender"), an individual/entity with its principal place of residence/business located at: [YOUR COMPLETE ADDRESS] AND: [BORROWER NAME] (the " Borrower"), an individual/entity with its principal place of residence/business located at: [COMPLETE ADDRESS] WHEREAS, the Lender is the legal owner of certain shares of stock (the "Lent Stock") and is willing to lend such stock to the Borrower under the terms and conditions set forth herein; WHEREAS, the Borrower desires to borrow the Lent Stock from the Lender for purposes of [PURPOSE OF BORROWING], and agrees to return such shares or equivalent as stipulated in this Agreement; NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties hereto agree as follows: LENT STOCK Lent Stock: The Lender agrees to lend the Borrower [NUMBER] shares of [COMPANY NAME] stock (the "Lent Stock"), which are currently registered in the Lender's name. Loan Term: The term of the loan (the "Loan Term") shall commence on [START DATE] and continue until [END DATE], unless terminated earlier by either Party in accordance with this Agreement. Collateral: As security for the loan of the Lent Stock, the Borrower shall provide collateral in the form of [DESCRIPTION OF COLLATERAL] valued at [VALUE]. The Lender shall retain possession of the Collateral for the duration of the Loan Term. RETURN OF STOCK 2.1 Return of Lent Stock: Upon the expiration of the Loan Term or earlier termination of this Agreement, the Borrower agrees to return the same number of shares of [COMPANY NAME] stock to the Lender, or shares of equivalent type and value if such shares are unavailable. 2.2 Failure to Return Stock: If the Borrower fails to return the Lent Stock by the agreed-upon date, the Lender reserves the right to retain or liquidate the Collateral to recover the value of the Lent Stock, including any damages or losses incurred. 2.3 Dividends and Rights: During the Loan Term, the Lender retains the right to receive any dividends, voting rights, or other distributions associated with the Lent Stock, unless otherwise agreed in writing. BORROWER'S OBLIGATIONS 3.1 Ownership and Use Restrictions: The Borrower does not obtain ownership rights to the Lent Stock. The Borrower agrees not to sell, transfer, pledge, or encumber the Lent Stock during the Loan Term. 3.2 Maintenance of Collateral: The Borrower agrees to maintain the value of the Collateral throughout the Loan Term. In the event of any depreciation or risk to the Collateral's value, the Borrower shall provide additional collateral upon the Lender's request. 3.3 Stock Substitution: If the Borrower is unable to return the specific shares of the Lent Stock, the Borrower shall substitute equivalent shares of the same class or provide equivalent compensation in cash or stock, subject to the Lender's approval. LENDER'S RIGHTS AND OBLIGATIONS 4.1 Retention of Ownership: The Lender retains full ownership of the Lent Stock throughout the Loan Term and retains all rights associated with ownership, including dividends and voting rights. 4
