Can`t find an older document or arrangement? > Following the collapse of Lehman Brothers, a major borrower, market participants had to go through the liquidation processes in real life. Fortunately, the majority of lenders have succeeded and have not lost, demonstrating the strength of the securities lending activity for actual beneficiaries. However, the importance of collective management has been emphasized as an essential instrument for managing counterparty risk, as well as the need for much greater transparency, particularly in the United States, where some breach of confidence in cash security reinvestment programs has been highlighted. > In the context of the crisis, regulators have begun to conduct a more in-depth review of loans and securities deposits, and a number of them have introduced restrictions on short selling around the world, which has had a negative impact on activity and uncertainty. Some restrictions are still in place at the time of the letter. Two important standard agreements govern the international lending and repo industry: the Global Master Securities Lending Agreement (GMSLA) and the Global Master Repurchase Agreement (GMRA). Another option in Europe is the use of the European Master`s Agreement (EMA). All of these agreements are described below. In order to minimize the legal risks associated with repurchase and securities lending transactions, there is an urgent need to sign standard agreements that clearly define the rights and obligations of counterparties during the duration of the transaction and in the event of a problem (for example. B delay on the part of one of the parties). It should be noted that, in the context of Lehman`s bankruptcy, these contracts have proven to be robust if applied in a real default scenario.

The Global Master Securities Lending Agreement (GMSLA), published by the International Se-curities Lending Association (ISLA), is the model agreement for securities lending on the international market. It is signed between the lender and the securities borrower and sets the terms and conditions of the securities lending transactions that are being processed between the two parties during the contractual life cycle: > securities loans; > delivery; > security (including acceptable form of security and margins); > distribution and corporate shares; > interest on securities and borrowed cash; > delivery of equivalent securities; > non-delivery; > breakdowns and consequences; > taxes; Standard Agreements The GMSLA The Security Interest Over Collateral (version 2018) is based on the existing 2010 GMSLA. The calculations in the corresponding sections of the agreement also take into account (i) amounts not paid between the parties due and payable, and (ii) if any, any income from non-payment-related security. > guarantees from the lender and borrower; > interest on unpaid debts; > termination of the contract. This briefing provides GMSLA with the substance of the agreement, sets out its key conditions, as well as related security and tripartite account control agreements, and examines its impact on the securities credit market.