A securities firm conducting book-entry central government bond borrowing and lending business shall enter into a borrowing and lending agreement with each customer.
The borrowing and lending agreement under the preceding paragraph shall at least contain the following:
- Methods of trading and confirmation.
- Information to be included in a trade confirmation document.
- Borrowing or lending period.
- Handling fee rate, and lending fee rate expressed as an annual percentage rate.
- Method of redelivery and conditions for early redelivery.
- Collateral type, substitution, ratio, and maintenance ratio.
- Method of transfer or delivery of the subject securities and collateral.
- Calculation and payment of interest on cash collateral.
- Compensation of entitlements and actions upon event of default.
- Handling of customer information.
- Cause for termination.