Document ID: chunk:federal_register_of_legislation:F2021L01333:body:0:p2
Version: federal_register_of_legislation:F2021L01333
Segment Type: other
Provision Reference: 
Character Range: 2925–5904

that entity ceasing to have a relevant interest in the securities, the lender of the securities under the securities lending arrangement is taken to have a relevant interest in the securities (or equivalent securities) that the borrower has agreed to deliver to, and vest title in, the lender or an entity nominated by the lender.
       (8B) If:
           (a) an agent lender is authorised under an authorisation agreement to act on behalf of a lender in relation to a securities lending arrangement between the lender and a borrower; and
           (b) in the case of a securities lending arrangement referred to in paragraph (8A)(a)—the agent lender, acting under the authorisation agreement, delivers and vests title in securities the subject of the securities lending arrangement to the borrower or an entity nominated by the borrower; and
           (c) the securities are subsequently disposed of by the borrower or an entity nominated by the borrower, resulting in that entity ceasing to have a relevant interest in the securities;
       the agent lender is taken to have a relevant interest in the securities (or equivalent securities) that the borrower has agreed to deliver to, and vest title in, the lender or an entity nominated by the lender.
       (8C) In subsection (8B):
agent lender: see the definition of authorisation agreement.
authorisation agreement means an agreement between a lender and another entity (agent lender) under which the lender authorises the agent lender to act on the lender's behalf in relation to securities lending arrangements, including by:
           (a) negotiating and arranging securities lending arrangements for the lender with a borrower (which may be the agent lender itself acting in the capacity as borrower under a securities lending arrangement); and
           (b) transferring securities held by or on behalf of the lender to the borrower on the terms of a securities lending arrangement without giving further notice of such transfer to the lender; and
           (c) terminating securities lending arrangements (including without prior instructions from the lender).
           borrower the same meaning as in paragraphs 608(8A)(a) and (b).
       lender has the same meaning as in paragraphs 608(8A)(a) and (b).
securities lending arrangement has the same meaning as in paragraphs 608(8A)(a) and (b).".

7 Securities lending—situations not giving rise to relevant interests
    Part 6C.1 of the Act applies to all persons as if section 609 were modified or varied by, after subsection (10), inserting:
"Securities lending arrangements
          (10A)  A service provider does not have a relevant interest in securities under subsection 608(8) merely because, in the course of providing services to a person as part of carrying on a prime broking business or custodial business, the person has, under a securities lending arrangement, given to the provider:
            (a) where the provider or an entity nominated