Month: April 2022

A home rental agreement is a legal document that outlines the terms and conditions of a rental arrangement between a landlord and tenant. It is a crucial document that protects both parties and sets clear expectations for the rental arrangement.

Here are some important things to keep in mind when drafting a home rental agreement:

1. Include the basics

Your rental agreement should include basic information such as the names of the landlord and tenant, the address of the rental property, the rental term (start and end date), and the amount of rent to be paid.

2. Define the terms

Make sure to clearly define the terms of the rental agreement, including the responsibilities of both the landlord and tenant. For example, who is responsible for paying utilities or maintaining the property.

3. Specify how the rent will be paid

Specify how the rent will be paid, whether it be in cash, check, or electronic transfer. Also, include information on the consequences of late payments and what happens if the tenant fails to pay rent.

4. Include a security deposit

A security deposit is a common requirement in rental agreements. It protects the landlord in case of damages or unpaid rent. Be sure to include the amount of the deposit and the conditions for returning it.

5. Add an early termination clause

Sometimes, a tenant may need to end the rental agreement early. Including an early termination clause will outline the conditions under which this is allowed and any fees or penalties that may apply.

6. Consult a legal professional

It is always recommended to consult with a legal professional when drafting a rental agreement. They can ensure that all legal requirements are met and that the document is enforceable in court.

In conclusion, a home rental agreement is an essential document for any rental arrangement. Take the time to draft a thorough and legally sound agreement to ensure a smooth and successful rental experience for both parties involved.

2. Exclusive Possession. In a rental transaction, ownership of the property does not pass to the tenant, but only the right to exclusive use and use of the property. During the rental period, the tenant has the right to exclude any other person from the property, including the owner and his authorized representatives, until the expiration or termination of the lease. Therefore, a lease must specify the exact date on which the tenant must deliver the rent, all the grace periods offered by the landlord and where the tenant must make the payment. For example, by check at the owner`s office or electronically to his bank account. Valid leases must also comply with federal fair housing laws. Leases usually have two possible end dates – either a fixed term or automatic renewal. Fixed-term end dates indicate a specific period in which the lease is active. At the end of the lease, both parties must agree on an extension and either add an addendum to the lease that extends its term, or register a new lease.

An automatic renewal will continue indefinitely, unless the landlord or tenant announces the termination of the lease. Creating a complete and effective lease is very important because it protects all parties involved throughout the term of the lease. Although many landlords start with standard leases, the language and terms are negotiable by all parties until signing, when the lease becomes a legally binding document. One of the most important parts of a lease is when, how and where rent payments are made. You can leave a deposit; However, it is advisable to specify very precisely the amount of the deposit that will be charged, what you can use the deposit for at the end of the rental period and what the tenant can not use it (for example.B. the tenant can not use the deposit as a rent payment for the last month of rent when the tenant leaves). If a disagreement develops between the landlord and tenant at the end of the lease, it usually starts here. As a landlord, you are responsible for including repairs and maintenance in your lease. A lease is a right to own property owned by the owner.

In the case of a rental transaction, the property transferred to the tenant is an exclusive property and not a property. Therefore, the landlord retains ownership of the rental property, which can only be transferred to the tenant by sale (through a purchase contract and a deed of assignment) or by gift (deed of gift). 1. Form of leases. Lease agreements may be concluded orally or in writing. However, it is considered more appropriate to conclude a written agreement. It is not uncommon for leases to include provisions on the tenant`s insurance, the number of guests who can stay with the tenant and whether the tenant can sublet the premises. In the event that your landlord client signs a lease, you may want to receive a separate document that covers both the terms of the lease and the lease with option to purchase/finance aspects of the agreement owner. The owner must work with their real estate lawyer to document the unique conditions of this type of transaction.

Your tenant has the right to privacy in his apartment. If you need to enter the property for any reason, you will need the tenant`s permission, except in certain circumstances. These circumstances must be indicated in the rental agreement. Even then, you must inform your tenant that you will enter the property and for what purpose is stated. Any other legal restrictions, such as . B restrictions on the type of business that a tenant can carry out at home, should also be set out in the rental or rental agreement. Important rules and regulations for parking and the use of common areas must be explicitly mentioned in the rental or rental agreement. You should also include what is considered “excessive noise” when defining it. A dog that barks incessantly for several hours, plays instruments aloud and noisy parties are good examples that can be listed on the rental agreement.

Whether you are drafting a rental or rental agreement, these terms and conditions are generally included. Leases must include start and end dates. In addition, a rental agreement must include the amount of rent due. It must indicate when the rent is due and how it is to be paid. A lease, on the other hand, is longer-term and covers an ongoing rental period. For example, in some recreational areas, leases may be seasonal and cover a period of three to six months. In many cases, a standard lease is valid for one year, although you may find that offering a two-year lease in the case of a well-qualified tenant is a great way to increase tenant retention and get a more consistent revenue stream. 4.

Certainty of ownership. The rental property must be identifiable and identifiable. The lease must accurately describe the scope and location of the property. If you have a restrictive use of the property, you must include these restrictions in the lease. There should be no confusion as to what your tenant is allowed to do on the property while renting. If you have tenants who have just arrived at your rent, be sure to allow them to document the pre-existing condition of the property before they officially move in. In this way, the tenant can detect the damage from the beginning; This reduces the risk of confusion or disagreement between a landlord and tenant when moving. 5. Deposits and Fees. The use and return of deposits is a common source of friction between landlords and tenants. To avoid confusion and legal problems, your lease should be clear: each state in the country has its own laws and regulations regarding the rental and leasing of real estate. If you`re a landlord, it`s important that you understand your state`s laws to make sure your lease properly meets all legal necessities for you and your tenants.

Most states have laws that include the following: The lease should include the names of all adult tenants and minor children. It must also be signed by any adult who will live on the property. This not only confirms who has the legal right to live there, but also allows you to collect the default rents from anyone who signs the lease. A rental agreement is a legally valid contract between the tenant and the owner. A well-structured lease can help reduce problems with your tenant and protect you in court if problems arise. Commercial leases are different from residential leases. A residential lease can apply to an apartment, condominium, townhouse, duplex or single-family home. A commercial lease may include warehouses, shopping malls and other such structures. Federal and state laws provide greater protection for residential tenants. In addition, the rental structure and the duration of the lease are different from those of a commercial lease. The residential lease provided by the California Association of REALTORS(R) (12/19) includes many standard terms that you`ll find in a well-drafted lease, as well as specific disclosures required by the state. In addition to some of the points we`ve mentioned, there are a few interesting things to consider, including the following: There are a variety of different types of leases that cover different markets, property types, and aspects of renting.

Overall, most housing contracts include the following: 6. Repairs and maintenance. Your best defense against rent retention issues and other issues (especially on deposits) is to clearly state your and the tenant`s responsibilities for repair and maintenance in your lease or lease, including: Most leases are short-term agreements, such as.B. monthly rentals, while leases generally apply to longer lease periods, para. B six months. one year or more. Here are some examples of some situations that may require an addendum in addition to the standard lease you are using: If you are a landlord and have properties to rent, it is important to have a written lease. If you and your tenant have a legal dispute, your chances of getting a favorable outcome will improve if you have a written agreement. 1. Names of all tenants.

Any adult living in the rental unit, including both members of a married or unmarried couple, should be named a tenant and sign the lease or lease. This makes each tenant legally responsible for all conditions, including the total amount of rent and the correct use of the property. This means that you can legally demand the full rent from one of the tenants in case the others give up or are unable to pay; And if a tenant violates an important provision of the agreement, you can terminate the tenancy for all tenants of that lease or lease. Describe the tenant`s support obligations in your lease to ensure they understand their obligation to maintain the property to your standards. Residential lease is the rental property that is granted to a tenant for residential use. In this case, the rental property is designed for the tenant`s dwelling or dwelling and cannot be used for business. .

Why is setting up businesses in a free zone such an attractive option and what could it mean for your business? For example, you may consider starting a business in Jebel Ali Free Zone, Dubai Internet City Free Zone or Dubai Airport Free Zone, among others. If you understand the fundamental benefits that come with entering this market, it`s time for you to seek expert advice. Get the support of a team that has the skills to help you follow the legal structure required when setting up a free zone facility. This includes registering your business so that it is recognized and regulated by the necessary authority, because as much as they allow you to trade freely, they also want you to adhere to legal expectations. A free port zone is a free trade zone connected to a sea or airport. A port free zone is created to relieve companies of state restrictions and allow the free movement of goods. Free ports allow the import and export of goods tax-free and guarantee tax exemption. These immense advantages encourage companies to use port free zones from a financial, fiscal, investment and regulatory point of view. Trade barriers, regulations for banking transactions and official requirements for employees will also be relaxed within the free port limits. Recently, some free ports have introduced multimodal cargo handling as a new service option. A company registered on the mainland is allowed to carry out its business activities throughout the UAE market, it can work with anyone inside or outside the UAE and not only in its free zone.

A free zone is a special economic zone in the United Arab Emirates that is either connected to ports or specific to industry and designed to boost international trade. This makes the process of starting a business very easy and hassle-free. There are 45 free zones throughout the country, and more are under construction. It`s a good idea to work with a start-up specialist at this point, who can make sure everything is in place before submitting your application to avoid unnecessary delays. Free zone companies are limited to a certain number of visas and this usually ranges from 1 to 6 visa packages. If you need more than the allocated allowance, you may be asked to rent physical space in this free zone, which can be expensive due to the limited supply but high demand for commercial space. The UAE is now an important and ideal business hub for starting a business or representative office, there are now over 40 different “free trade zones” in the UAE, so identifying the best free zone through which to do business in the region can be a tedious task. It is also a common misconception that a free zone company is an offshore company, but despite its similarities; They also have very different characteristics. To start creating a free zone company, we need the following documents and the due diligence of all shareholders/directors of the proposed new company: If several countries enter into an agreement to create a common free trade zone, all trade barriers will be removed. No duties or taxes are levied within the free zone. This accessibility attracts companies from all sectors and encourages them to set up in the free zone and register new businesses. A free zone optimizes the movement of goods between the different countries of the zone and offers the possibility of securing or prohibiting imports from third countries.

The analysis includes the number of strong brands involved in the region and those that will give you the most difficulty when you enter the market. This type of research is essential, and it would be ill-informed to continue to set up a free zone facility without understanding what you are dealing with. You will also learn about the underlying factors related to the type of business you want, such as. B a partnership, a public company or even a private company. This information is more accurate when it is received from someone who has supported other businesses in the same area, and therefore they know the loopholes and know what can happen if the business enters as public or private. A number of possibilities! The range of free zones in which you can start your business is by no means limited to the three listed here. Depending on the goods your business produces or the services you offer, there may be a free zone that is specifically suitable for your business. Whether you are in the media sector or in the healthcare sector, we can help you grow your business in the free zone that suits you. Starting your own business has never been easier. Virtuzone takes care of everything so you can focus on what`s important: starting your business. For more information on setting up businesses in the continental UAE or free zones, please call us on +971 4 457 8200, email info@vz.ae, click here. Support and assistance: Free Trade Area authorities are available to offer support during construction and beyond.

Most free zones provide visa application assistance to shareholders and all relevant dependents such as spouses or domestic workers. Many also help open corporate bank accounts, advise you on the best bank to meet your needs, and even arrange branch meetings for you. In terms of ongoing support for businesses, it is not uncommon for free trade zones to offer business advisory and networking services, as well as access to start-up centres and growth initiatives to help new businesses set up. A free trade area is a geographical area within a country and can be designated or located anywhere in a country. Large production and trading companies have the opportunity to relocate their entire production chain to these free zones, which guarantees significant savings in the transport and export of goods to other countries. Similarly, a company could relocate its production facilities to another country and import the resulting goods into the free zone without paying duties or taxes. This means, for example, that a company can have its goods produced in China, import them tax-free into the free zone, and then export them again tax-free. In this scenario, the company`s profits remain in the country of the free zone and are exempt from tax. Typical business activities in free zones are the handling and storage of goods in warehouses (often rented in the free zone), the packaging and sorting of individual products into smaller quantities or individual packages, and the inspection of distribution and freight centers. Taxes and levies: This is perhaps the most convincing reason to choose a free zone: the tax system.

Located in a free zone and benefiting not only from 0% corporate and personal tax, your company is also exempt from VAT, currently at 5%. And that`s not all. Enterprises in free zones are also exempt from import and export tax and can trade without monetary restrictions. Step Five: Visa Processing. The final step in the business start-up process is immigration and visa processing. The free zone authorities or a business start-up specialist can manage this process on your behalf and assist you in your application and work with the relevant government departments. Located in a free zone and benefiting not only from 0% corporate and personal tax, your company is also exempt from VAT, currently at 5%. Step Three: Complete the paperwork and submit your application. For establishment in a UAE free trade zone, only a few standard documents are usually required: completed application form, copies of the shareholder`s passport, etc. In some free zones, you may also need to submit a business plan. Again, it`s a good idea to work with a start-up specialist at this point, who can make sure everything is in place before submitting your application to avoid unnecessary delays.

Special benefits: As in Ras al Khamai and Ajman, companies based in the Dubai South Free Trade Zone enjoy many tax advantages. Shareholders of these companies may also be eligible for investor visas, which allow them to reside freely in the UAE. Dubai South is also an internationally recognized free trade area. If you`re convinced of the benefits of doing business in a free trade area, there`s more good news – setting it up requires only five simple steps. Setting up a business on the mainland or in the free zone is not so difficult and can be carried out in a week. However, foreign investors can deal with the legal aspect of obtaining essential documents. To open business in Dubai smoothly, it is best to seek the help of a lawyer or business consultant. Foreign ownership: Another great advantage of setting up in a free zone is the ownership of foreign companies. Most foreign entrepreneurs who wish to settle on the UAE mainland need to work with a local partner to do business.

This is not the case in the UAE`s free trade zones – set up your business here and you will retain 100% ownership. The main purpose of a free zone facility is the import and export of goods, and the authorities of the free zone usually do not need permits from outside authorities. However, external approvals of governing bodies outside your free zone will not be taken into account. Step One: Select your business activity. .

Contract law deals with agreements between two or more parties, each of which is required to retain its share of the agreement. For example, two parties enter into an agreement on the rental of an apartment. The landlord has the right to use the apartment and the landlord receives the rent money as compensation. If a party violates any of the provisions of the contract, it has committed a civil injustice called “breach of contract”. In general, contracts can be oral or written, but some types of contracts must be recorded in writing. However, codification is by no means a defining feature of a civil law system. For example, the laws governing the civil law systems of Sweden and other Nordic countries, as well as the Romano-Dutch countries, are not grouped into broader and more extensive codes of law as they apply to French and German law. [19] In the United States, civil law is not a legal system; Rather, it is a way of grouping non-criminal cases. One of the biggest differences between civil and criminal cases in the United States is who is leading the litigation. In criminal matters, it is up to the government to charge the accused.

In civil matters, an independent party sues another party for misconduct. Unlike common law systems, civil courts treat case law independently of precedent. Most of them have innovations introduced by Italian legislation, including the unification of the Civil and Commercial Code. [21] Civil law includes disputes between two parties, including individuals and businesses. Examples of civil cases include negligence, fraud, breach of contract, medical malpractice, and dissolution of marriage. If someone damages another person`s property, the victim can sue the perpetrator in civil court for the cost of the damage. Conceptually, civil law is based on abstractions, formulates general principles and distinguishes between substantive and procedural rules. [3] It considers that the case law is secondary and subordinate to the law.

Civil law is often associated with the inquisitorial system, but the terms are not synonymous. An important common feature of civil law, in addition to its origins in Roman law, is the complete codification of preserved Roman law, that is, its inclusion in civil law codes. The oldest known codification is the Code of Hammurabi, written in ancient Babylon in the 18th century BC. However, these codes and many of the following codes were primarily lists of civil and criminal abuses and their sanctions. The typical codification of modern civil systems appeared only with the Justinian Codex. The following table contains significant differences (and in some cases similarities) between the world`s four major legal systems. [8] Germanic codes appeared in the 6th and 7th centuries in order to clearly delimit the law applicable to the Germanic privileged classes in relation to their Roman subjects and to regulate these laws according to the law of the people. Under feudal law, a number of private custumals were set up, first under the Norman Empire (Very Old Customary, 1200-1245), then elsewhere to record majestic – and later regional – customs of court decisions and the legal principles underlying them. The Custumals were mandated by lords who presided over the owners` courts as lay judges to inquire about the trial. The use of clients from influential cities quickly became commonplace in large areas. In accordance with this, some monarchs consolidated their kingdoms by trying to set up custumals to serve as the law of the land for their empires, as when Charles VII of France commissioned an official custumal of the law of the crown in 1454. Two important examples are the Custom of Paris (written in 1510; revised in 1580), which served as the basis for the Napoleonic Codex, and the Sachsenspiegel (circa 1220) of the dioceses of Magdeburg and Halberstadt, which was used in northern Germany, Poland and the Netherlands.

In the United States, civil law has different meanings. In most parts of the United States, civil law is synonymous with “common law” or “law established by a judge,” which relies on previous court decisions to determine the outcome of cases. The guiding principle is “Stare Decisis”, which means that the outcome of a trial depends on the results of previous similar cases. Another important Civil Code (BGB), which came into force in the German Reich in 1900. [12] The German Civil Code is highly influential and inspires civil codes in countries such as Japan, South Korea and Switzerland. It is divided into five parts:[12] Several Islamic countries have civil law systems that contain elements of Islamic law. [24] For example, the Egyptian Civil Code of 1810, which developed in the early 19th century – which is still in force in Egypt, the basis of civil law in many countries in the Arab world where civil law is used – is based on the Napoleonic Codex, but its lead author Abd El-Razzak El-Sanhuri tried to integrate the principles and characteristics of Islamic law, to take into account the unique circumstances of Egyptian society. However, some of these legal systems are often and more correctly referred to as hybrid in nature: civil law and criminal law serve different purposes in the U.S. legal system. The primary purpose of civil law is to settle disputes and compensate a person who has been harmed by the actions or conduct of another person. The main purpose of criminal law is to prevent undesirable behaviour and to punish those who commit an act considered undesirable by society.

While the lawsuit against McDonald`s has made national headlines, the facts of the case regarding negligence, defective product, and breach of implied warranty are a fascinating civil case. Civil law is a legal system that has its origins in continental Europe and has been adopted in large parts of the world. .

With this initiative, India now has an air bubble agreement with 34 countries that includes the following: Read also – Omicron: Two new symptoms you should not ignore Yes, not all countries allow visas of all categories. It`s just that under the Air Bubble agreement, you don`t have to do any extra paperwork like registering online or at the embassy to get in and out of the country. The rest of the trips remain the same as in the pre-Covid era, except that the state`s border rules apply. In India, for example, people holding a valid tourist visa are not allowed. Who can fly on bubble flights between India and Saudi Arabia? No, “air bubbles” does not mean the resumption of international commercial passenger flights. These are still repatriation flights where countries have agreed to allow their respective airlines to enter and leave their respective countries, but again under conditions. Although India has extended its embargo on international flights until September 30, “air bubbles” or “air bridges” have become the only way in which international commercial travel has resumed since mid-July. Since then, the number of air bubbles in India has risen to 13, with Japan being the youngest country to make the list. Unlike the Vande Bharat mission, the Air Bubble Pact is a bilateral agreement between two countries that allows passengers to travel freely without registering with the government. In the Vande Bharat Mission, you need to register your name with the Embassy of India to fly from a specific country. Even in air bubbles, flights from both countries are allowed to fly increasing options and lower prices. Mission Vande Bharat is only operated in countries from which no flights are allowed. The Air Bubble Agreement is a bilateral agreement between two countries in which airlines from both countries can operate international flights with a set of rules and restrictions.

A statement from dgca India states that “under the bubble agreement, any Indian holding a valid visa can travel to Canada, the United Kingdom, the United States and the United Arab Emirates.” In July, India had initially built travel bubbles with the United States, Germany and France. Since then, India has signed agreements with 10 other countries – Britain, Canada, Maldives, united Arab Emirates, Qatar, Bahrain, Nigeria, Iraq, Afghanistan and Japan. The Air Bubble Agreement is a bilateral air corridor established between different countries to ease travel restrictions in the context of the travel ban imposed by various countries due to the coronavirus. Despite the ban, India was among the first nations to begin the repatriation operation in May to bring back the stranded Indians. Soon after, air bubbles were formed to make travel even easier. A bilateral air bubble is a mechanism to resume flights between two countries under preconditions during the pandemic. Earlier this month, the government informed Parliament that it had a proposal from 10 countries to sign the air bubble deal, which has now been made to make announcements for Australia and Saudi Arabia. The main nations that will follow are Thailand and New Zealand.

To mitigate a variety of Covid-10 quarantine and testing rules in arrival destinations, governments are implementing “air bubble” agreements between countries. Air bubbles or travel corridors are systems established between two countries that perceive each other as safe and allow airlines from both countries to carry passengers in both directions without restrictions. So what`s the benefit of having these options to choose from when traveling within India or outside of the US, France, and Germany? Will this reduce Air India`s monopolistic stranglehold on ticket prices? Experts don`t really say that. Sources in the Department of Civil Aviation said talks with the UK to create an “air bubble” were at an advanced stage. India has built an aviation bubble with Afghanistan. Indian airlines and Ariana Afghan Airlines are now allowed to operate flights between India and Afghanistan and carry the following categories of people on these flights: Under the India Air Bubble bilateral agreement, any Indian citizen traveling to Australia and holding a valid visa from the destination country is allowed to travel with the India Air Bubble. An air bubble is a temporary agreement between two countries to resume commercial air travel at a time when scheduled international flights are suspended due to COVID-19. .

The courts have the inherent power to enforce settlements between the parties in pending cases.24 If the rejection is not final,47 the court will continue to have jurisdiction to enforce, amend or cancel the settlement agreement. If a notice of termination is temporary, “no reservation of jurisdiction over the dispute between the parties is required, since jurisdiction has never been lost.” 48 Do not attempt to deal with a matter or settlement agreement alone. Call TorkLaw`s law firm and get an experienced lawyer by your side. Applicability issues are always questioned when it comes to settlement agreements in court. They often depend on the judicial rules of the state. The agreed invoicing contract is interpreted in accordance with the contract construction rules. The parties can even request evidence in the event of a factual dispute. Once the judge has approved the divorced couple`s settlement agreement, he or she gives the couple a divorce decree that shows that the divorce is final and documents the important issues that have been resolved. The decree prescribes a number of things about the rights and obligations of the now divorced couple, including: Amendments or modifications made to a final order of divorce or judicial separation must be resubmitted to the court and approved by a judge. No. You do not have to accept a settlement agreement when it is presented to you.

Nevertheless, you may want to make sure that you have a counteroffer that is ready to go to the other party. For this reason, a lawyer is often preferred, as he often anticipates the relocation of the counterparty`s lawyer. If you want to be sure that you are ready for a successful settlement agreement, read this article. It is very common when writing your own agreement to make mistakes or omit information. Even if you think your settlement agreement is simple, any small mistake can have a big impact on your rights. Some of the most common legal formulation errors when drafting your own settlement agreement include: Marriage agreements or divorce/separation agreements can cover important issues such as: The courts, however, do not have the inherent power to enforce settlement agreements after a case is dismissed: “Execution of the settlement agreement.. is more than a mere continuation or renewal of the dismissed appeal and therefore requires a separate basis for jurisdiction. 25 If the initial appeal has been dismissed (without having jurisdiction to enforce the settlement agreement), a new appeal must be brought before a court having jurisdiction as to the substance of the matter. This usually means diversity jurisdiction because the application of a regulation does not involve a federal matter.26 If one of the parties refuses to comply with the contract, there is a violation of the regulation.

Each state has different procedures for dealing with a breach of contract, but in general, a new lawsuit must be filed. If you don`t have extensive knowledge in drafting and negotiating settlements, you`ll likely be overwhelmed by the terms the other party wants to accept. That`s why it`s always in your best interest to have a lawyer by your side who can handle these types of contractual arrangements. In a divorce case, one party will often enter into a settlement agreement to be proposed to the other party. It is important to remember that this is only a proposal and you do not have to accept all the conditions and sign it. This is just the beginning of the negotiations. You should consider consulting a family law lawyer to review the proposed terms to ensure you are protected. When a divorced couple (and their lawyers) negotiate and resolve all matters related to their divorce, either informally or through out-of-court proceedings such as mediation or collaborative law, the couple`s decisions are set out in detail in a written settlement agreement. This agreement is then presented to a judge in the district division of the state court where the divorce petition was filed. A divorced couple may reach agreement on a number of divorce-related issues, but may not be able to agree on other issues. In this case, a partial agreement can be reached and the remaining unresolved issues are submitted to the court for resolution.

C. It shall be for that court to retain jurisdiction to allow either party to this Settlement Agreement and the Order to seek from this Court at any time such other orders and instructions as may be necessary or appropriate for the implementation or interpretation of this Agreement and the Settlement Arrangement, to modify or terminate any of its provisions. enforce and punish violations of its provisions. While a divorce agreement once signed becomes legally binding, that doesn`t mean it can`t be changed or revised. As a general rule, if the audit concerns a financial matter, both parties must agree to the audit. These rules regarding by-law agreements may vary from state to state and municipality to municipality. A personal injury lawyer can help manage legality and ensure that the agreement is respected. The court cannot enforce a settlement agreement if there is none; A concluded agreement approved by the parties is necessary to establish a violation of a settlement agreement. The power to enforce a settlement can only be exercised if the terms have been agreed, although they do not have to be in writing. This order is binding under the state`s family law, although it may sometimes be subject to change in the future.

Most of the provisions relating to the distribution of property are final; However, other legal issues may be subject to adjustment, in particular those concerning custody and access to children. The anti-injunction law generally prevents federal courts from initiating proceedings in state courts, but allows for a stay “if necessary to support their jurisdiction or to protect or enforce their judgments.” 41 Parties may apply to a court that has retained jurisdiction to enforce a settlement to enforce an injunction requiring the dismissal of a competing action.42 Most courts will not blindly confer imprimatur on established consent orders (for example. B the imposition of future non-pecuniary obligations), as performance may affect the rights of third parties or otherwise be unfair. The court will want to know the context of any consent order and insist on whether the order is an order it would approve.5 The criteria used to decide on the approval and submission of a proposed consent order are whether it is “fair, reasonable, appropriate and consistent with the public interest.” 6 The court may not amend a decree of consent sua sponte . . .

Whether a company uses contract manufacturing to hire subcontractors, rent warehouses, or produce a product, it must sign an official contract called a contract contract. All the money and resources a company can save through contract manufacturing can be diverted to other operations. For example, a company may strengthen its marketing strategies, hire employees for other departments, and/or intensify sales efforts with the capital saved. As a customer, it is important that you make sure you protect your intellectual property. You can choose to include a clause whereby the manufacturer does not manufacture products similar to yours. They may also consider adding a period after the expiry of the agreement in which they will not be able to manufacture similar products. It is best to ask your manufacturer first if they would object to the inclusion of this clause in the agreement. A licensing agreement is essential when a company expects a contract manufacturer to use its trademark intellectual property. Without it, a third party cannot legally manufacture a product and will be wary of receiving a lawsuit for trademark infringement. In all likelihood, a company`s products will not start and end in the same place, and the services and skills of several different business partners will be used to design, produce, package and market a product.

It is useful to define the supply chain of a product as part of the contract manufacturing agreement in order to improve efficiency and enable communication throughout the production process. Many manufacturers rely on contract manufacturing to save money and time and improve product quality. This method (also known as outsourcing) uses products or services manufactured by a third party. By signing an agreement with an external company, you can get the support you need to manufacture and sell your products. This allows you to create a product without investing in equipment, machinery or special product knowledge. For example, you can use a manufacturing contract to ask a local or foreign manufacturer to manufacture all or part of the product that your company manufactures and then sells. In terms of contract manufacturing, a company would supply raw materials to a third-party company. The third-party company would then provide the manufacturing services.

In comparison, the third-party company would be responsible for sourcing raw materials as well as providing manufacturing services for a contract manufacturing contract. For a contract manufacturing contract to become legally binding, it must include an offer of employment, acceptance by all parties, the intention to establish a legal relationship, and consideration (the transaction of currency or goods). This ensures that all parties are protected in case of disagreement or non-fulfillment of their promises by a third party. With the help of contract manufacturing, companies are able to maintain a constant production of high-quality products. Setting this standard will increase brand awareness and ensure market awareness as a reliable distributor. It can also lead to better business relationships with potential partners and future entrepreneurs. Contract manufacturing is also commonly referred to as private label manufacturing. Once you`ve developed a product, a manufacturer brings it to life. A manufacturing contract establishes the service contract between a product developer and a manufacturer.

The contract includes details such as unique product specifications, order numbers, inventory details, and payments. With a signed manufacturing contract, your product is ready for the market in the shortest possible time. Contract manufacturing agreements vary enormously. Organizations can sign a contract that applies to a specific product line or sign multiple agreements with different suppliers in a particular region. Many mobile phones and game consoles are manufactured under contract manufacturing contracts. A solid contract will help you and your business protect yourself from these potential problems, so you should work with an experienced lawyer when drafting your manufacturing contract. Manufacturing can be extremely expensive. Companies must buy land and erect buildings or buy an existing production facility and adapt it to their needs. You need to order and install large machines, purchase material handling equipment, and determine and order deliveries. Companies can bypass all this preparatory work by outsourcing the production of their products to a subcontractor.

A well-designed contract manufacturing contract is critical to the success of the relationship. A contract manufacturer is a company that manufactures goods for another company. The subcontractor is responsible for the supply of raw materials necessary for production. They also provide manufacturing processes to meet certain requirements, such as: The duration of a manufacturing contract varies depending on the type of agreement, but usually the duration is three to five years. The contract stipulates that the customer agrees to mandate the manufacturer and that the manufacturer undertakes to make the goods available to the customer. It is not uncommon for the agreement to include a provision that expressly states that the signing of the agreement does not constitute an agency relationship or a joint agreement between the parties. Many contracts involve consumer goods, and these products carry certain liabilities and potential risks. The contract manufacturing agreement must clearly state these risks and the party responsible for addressing or responding to them. A major risk is the delivery of the product or the risk that the manufacturer will not deliver the products on time so that the customer can fulfill its obligations to dealers and retailers, which could lead to the customer not fulfilling its purchase contracts. It is useful to establish a system of accountability and transparency. Regular checks and a clear reporting process ensure that issues are quickly identified and resolved.

In addition, they ensure that all parties are always on the same page. Never let a relationship languish. While a contract manufacturing contract can be efficient and profitable today, that doesn`t mean it will always work in favor of a company in the months or years to come. Warranty: Warranties in manufacturing agreements can vary greatly. Some guarantee that the products will meet the product specifications for a certain period of time, so offer a hardware warranty (including a transmission guarantee from the hardware supplier). Some guarantee that the manufacturing is professional, and others offer all of the above and more. Some things to keep in mind when crafting a warranty clause for a manufacturing contract are: A company can focus on its core values and skills when a contract manufacturer takes on the burden of manufacturing products for it. Companies may choose to create a manufacturing contract for several main reasons. In general, these contracts make it more cost-effective, efficient, and easier to bring new products to market and then achieve widespread adoption. The main advantages of using a manufacturing contract include: A manufacturing agreement defines the conditions under which the manufacturer manufactures goods for a customer. The agreement covers the obligations of both parties as well as the various details and specifications of the goods to be manufactured.

The schedule of your manufacturing contract describes the relationship between the parties, including the duration, start date, and place where the goods are manufactured. It is important that the schedule includes the payment terms. This series of articles will unpack what a manufacturing agreement should include and what each of the provisions means. Indemnification and Limitation of Liability: Most manufacturing agreements include a indemnification clause. Compensation is, by definition, an obligation by which a party undertakes to protect another party from a legal consequence of the conduct of one of the parties or another person. The contract manufacturing activity offers several advantages. The agreement also specifies whether the relationship between the parties is exclusive. Manufacturers will most likely want a non-exclusive relationship where customers want an exclusive relationship.

Both parties will then be advised to negotiate this deadline in order to reach a mutual agreement. Contract manufacturing occurs when a contract manufacturer enters into an agreement with another company to manufacture certain components or products over a certain period of time. It is always important to evaluate a set-off clause as part of a party`s obligations. A limitation of liability clause is also very common in manufacturing agreements and tends to establish an acceptable risk balance for each party. Some things to keep in mind are: A key element of a contract manufacturing agreement is who retains the rights to the product design – the manufacturer or their customer. The decision could name one or the other, or it could depend on the need for the manufacturer to modify the design to adapt it to its manufacturing processes. These contracts also include refund policies. For example, one contract may not allow reimbursement from the manufacturer, while another may provide for refunds if the manufacturer does not meet certain quality standards. Another essential element is termination: how much notice period must be given and what scenarios lead to termination. Once you`ve developed a product, a manufacturer brings it to life.

A manufacturing contract establishes the service contract between a product developer and a manufacturer. The contract includes. Companies hire contract manufacturers when they make the strategic decision to focus on product development, customer service, and similar aspects of the product creation and delivery process, rather than focusing on actual manufacturing. A subcontractor manufactures products under contract for other companies. .

* Some people call comparative conferences mediation. Mediation is a type of alternative dispute resolution (ADR). You may need to attend a settlement conference before you have a hearing in your court case. All parties must be present in person at the settlement conference. Claims adjusters of insured defendants or representatives of rights of way in sentencing proceedings must be present and have full authority to settle the case. Any person attending a comparative conference must attend in good faith and be willing to settle the matter. For more information, see local rule 2.2.2. “Hi John, I`m trying to figure out what the insurance company`s settlement attitude is before we go to our pre-trial conference. The rules and regulations of the New York court require that only lawyers who are familiar with the case and who have the power to settle the case may appear at such a settlement conference. Financial Statement – In family law cases, KCLFLR 10 and 16 state that you must provide the settlement conference judge with a financial statement with a description of the property. The form is FL All Family number 131. Get it from the website of the State Administrative Office of the Courts. The comparative conference itself is held free of charge for the parties.

However, lawyers may charge clients for their preparation and assistance time at the settlement conference. The King County Superior Court Local Court rules on settlement conferences are KCLCR 16 and KCLFLR 16. KCLCR stands for King County Local Civil Rule. KCLFLR stands for King County Local Family Law Rules. Confidential information – Protect your financial documents. Have them sealed by the court. Use a form for sealed financial source documents. (This is form number FL All Family 011.) The deadline for this is indicated in your King County Superior Court case calendar.

You must have a settlement conference, mediation or other alternative dispute resolution process at least thirty days before the trial. If you give documents to the settlement conference judge, you must give a copy to the other party`s or other party`s lawyer. You will need three copies of everything: Note: Settlement conference documents are “filed” (not filed) with the court and are not suitable for electronic filing. If you think the settlement conference judge didn`t understand your side of the story, you may want to go to court. However, as a general rule, the resolution of a case during or after a settlement conference is preferable to a trial: if your lawyer knows this in advance and discussed the value of the settlement with you before that conference, he or she may be able to resolve this matter on your behalf during that conference. A request for an agreement and a bona fide offer must be exchanged prior to the settlement conference. Lawyers acting on behalf of their clients must be fully familiar with the case and have full negotiating and arbitration powers. The lawyer must be authorized to make a specific claim and must be allowed to make an offer or counter-offer of a certain amount. Some States require parties to attend a settlement conference before they can take legal action. It is relatively short and less formal than a trial, although a judge will oversee the conference.

You can hold it in the judge`s room or in a conference room. If one or both parties have a lawyer, the lawyers will also attend the conference. If a company is involved, it must send someone who has the power to reach an agreement on behalf of the company. A settlement or pre-litigation conference is a meeting between the opposing parties to a lawsuit in which the parties attempt to reach an amicable settlement of their dispute without having to proceed to a trial. Such a conference may be initiated by both parties, usually by submitting an offer of settlement; or it may be ordered by the court as a precedent (preparatory stage) for the holding of a trial. Each party, the plaintiff and the defendant, is usually represented at the settlement conference by its own attorney or counsel. Conferences are often held by a judge or other neutral party in the form of mediation. Not the trial judge. This is usually another judge or family law officer. It can also be a retired judge, a private lawyer or a settlement service. The settlement conference judge will send a notice explaining this. Follow the instructions carefully.

It may limit the length of letters and exhibits. Example: The judge asks for a three-page letter describing the situation. Don`t write ten pages. You can attach documents to your billing conference letter. Label them by number and refer in this way in the letter. Exhibits can be things like child benefit calculations or an assessment of your home. In some courts, the rules require lawyers to “meet and advise” before certain types of motions or motions are heard by the judge to try to resolve the case. If the settlement conference is to be heard by a lawyer who specializes in voluntary settlement, the settlement conference letter must be submitted to the court and not to the lawyer.

For more information, see local rule 2.2.2. Most judges have rules of procedure that set out their requirements for comparative conferences, including written explanations and attendance. Questions relating to these matters should be addressed to the Chambers of the Designated Magistrate. See ADR LR 7-2. A settlement conference can also be a useful way to resolve a divorce or custody case. This may allow spouses to deal with these private matters with more dignity than discussing them in open session. Spouses can only disagree on certain aspects of a divorce, which can make it easier to reach an agreement. For example, they may agree to adjust asset splitting in exchange for a reduction in spousal support (support), or they may change their custody agreement while changing child support payments. No. Example: You agree to settle for half of the marriage property. You choose to do this if there are other parts of the colony that you like. They do not reach an agreement.

The settlement fails. You can still claim more than half of the assets in court. The other party cannot tell the trial judge what happened at the settlement conference. The written declarations of the conciliation conference shall, if necessary, be submitted directly to the conciliation judge. Observations are not submitted to the court. See ADR LR 7-4. You must give the conciliation judge the declaration and description of the property in a timely manner. .

Online services are available to create your operating contract, but it is recommended to contact a lawyer who specializes in these matters. You can ensure that all relevant clauses are covered and adapt the agreement to the requirements of your state. For example, a well-drafted company agreement can help determine that your business operates as a separate entity from you. If you can`t do that, you might find it difficult to take advantage of one of the main benefits of the LLC: limited liability. If there is only one owner of an LLC, is an operating contract still required? The answer is: YES! Here are four reasons why an LLC with a single member must prepare for and comply with an operating agreement. The question you have to ask yourself, the thing we all ask sole proprietors, is, “Why would I need a business agreement with myself?” Well, there is an excellent, very good reason. for protection! Typically, an LLC determines the voting rights of its members in relation to each member`s ownership shares. Whatever you choose for your LLC, you must ensure that your LLC operating agreement specifies the amount of voting rights granted to each member. Another important feature that should not be overlooked is whether a unanimous decision or a majority of votes is needed to make a decision or solve a problem. You can use online services to create a business agreement, but you`ll be better served if you seek the help of a lawyer.

Your attorney can make sure all relevant clauses are included, and he or she can tailor the document to your state`s requirements. CONGRATULATIONS!! You just started a New York limited liability company to buy a rental property with your cousin Vinny (no, not that cousin Vinny) and his good friend Michael. Starting a limited liability company to own real estate is a wise decision. An LLC offers you limited liability protection against creditors, and there are certain tax advantages for such a structure, such as .B. through treatment for U.S. income tax purposes, which generally provides for the taxation of profits exclusively at the member level. In case you`re confused, let`s quickly review what we mean by liability protection. LLCs protect your personal belongings, such as .B. Your home and bank accounts, in front of people who are suing your business for any reason (p.B, property damage or breach of contract). Joint limited liability companies should document their joint decision-making and profit-sharing decisions, as well as the measures they take to manage the arrival and departure of members. If there is no operating agreement, you and the co-owners are not sufficiently equipped to reach agreements on management and financial misunderstandings.

Even worse, your LLC must follow one of your state`s standard operating conditions. This could be a much heavier burden than spending time filling out the forms needed to enter into a business agreement. Now that you understand the importance of having a single-member LLC, you`re probably wondering what it entails and how to get started. Here`s a list of what your company agreement should cover. The debate on single-person SARLs and company agreements Therefore, it may be useful to adopt a company agreement containing provisions on the exclusion of members. An LLC operating contract is not necessarily mandatory, although it depends on the state in which your business is located. You might have a lot of useless arguments if the situations in your LLC change. Without a company agreement, you have no recourse if something goes wrong with the company.

If you feel that an LLC operating agreement is not necessary, you will not have a shock if you need to resolve an LLC issue with your state`s standard rules. Not exactly. A.R.S. Article 29-732 states that, unless the operating agreement provides otherwise (!), a member who assigns all or part of his interest in an LLC is not actually exempt from his liability to the company. Instead, the resigning member would need the written consent of all members, or the assignee of interest would in fact have to be admitted as a member. Most of us small business owners dream of the day when our business will go beyond what we can handle ourselves. If you are in this fantastic position and are ready to add another member to your LLC, you will need to repeat the above documentation in accordance with the agreement between you and the new partner. However, for the sole proprietor of a single LLC, it may be more difficult to show a separation. For example, while you may have a separate business account for your LLC, since you are the sole owner of that account, there may be separation issues, especially with creditors.

An operating agreement that clearly separates these areas from other areas of potential confusion can help the LLC maintain limited liability. A company agreement also clarifies what happens if the owner dies or is unable to manage the business. This means that a succession plan is established. Your operating agreement must include a clause that determines who manages the LLC if you are unable to do so. Without this specific provision, it can be difficult for your family to sue or sell the business without lengthy litigation. The voting rights of each member and the distribution rights of the LLC`s profits are determined based on the value of their contributions to the LLC, as specified in the records of LLC§ 402 (a) LLC Law, § 504. Assuming that Joe, Jane, and Jessy probably didn`t keep track of the value of their respective messages either, the value of each member`s contribution would have to be determined. How valuable can you place on the web design provided by Joe compared to the money Jane and Jessy injected into the LLC? This can become chaotic and fertile ground for conflict. 1. It can protect you from liability.

That`s right. An operating contract helps protect your personal assets from your business assets. It is important to understand this as this is the main reason why your LLC to a member needs an operating agreement. Under York`s Limited Liability Companies Act (the “LLC Act”), a contract of enterprise may contain provisions that are not contrary to the law or its articles relating to (i) the activities of the limited liability company, (ii) the conduct of its business, and (iii) the rights, powers, preferences, limitations or responsibilities of its members, officers, employees or agents. as appropriate. If you do not enter into a written operating agreement that clearly and appropriately governs the rights and obligations of its members, the LLC and its members will be subject to the standard provisions of the LLC Act in authoritative written form. An operating agreement is a contract between LLC members that is similar to a partnership agreement or shareholders` agreement. It shows the structure of the organization. It establishes the duties, rights and responsibilities of members in the operations and finances of the LLC. Most importantly, it covers what happens when a member wants to leave the company and how and when a member can transfer or sell their LLC stake.

Relying solely on the standard provisions of the GmbH Act may have unforeseen and possibly negative consequences for one or more shareholders. For example, if you, Vinny and his good friend Michael each have a third (1/3) interest in membership, did you know that Vinny and Michael can accept a company agreement without your consent? That`s right, under Section 402(c)(3) of the LLC Act, unless you have an operating agreement that says otherwise, members who hold a majority of the members` interests can accept an operating agreement without the consent of the other members. It is certainly not a position that a member of a minority would like to find on their own. Managing your LLC is just one area where the standard requirements of your state might conflict with the opinions of your LLC members about how the LLC should operate. There`s only one way to ensure that your LLC will perform as your members would prefer, and that is to create an operating agreement that covers all crucial areas, from finance to management. Also, don`t forget to review your company agreement every year so that it reflects the wishes of its members and addresses all areas in which their members wish to circumvent standard state law. In most states, the standard administration follows the structure managed by the members. This means that all LLC members must reach an agreement on all business decisions.

Your LLC operating agreement can override the standard by confirming the type of management and specifying the degree of authority granted to the management team. This means that you run your LLC according to the wishes of your members, not according to your state`s standards. If you`re more familiar with businesses, a company agreement is essentially a cross between a company`s articles of association and a shareholders` agreement. One key difference, however, is that while shareholder agreements are highly recommended (see my article on the benefits of shareholder agreements), they are legally optional. On the other hand, written employment agreements are not only useful, but are even required by New York law (see www.nysenate.gov/legislation/laws/LLC/417). You may be a small LLC and your state`s standard laws work well for you, but things change and you could be negotiated with more than one by withdrawing from a company agreement. .

In securities lending, the owner of shares or bonds temporarily transfers them to a borrower. In return, the borrower transfers other shares, bonds or cash to the lender as collateral and pays a loan fee. The initial driver of the securities lending business was the coverage of settlement errors. If one party does not provide you with inventory, it may mean that you are not able to deliver shares that you have already sold to another party. To avoid the costs and penalties that may result from the failure of the settlement, the shares could be borrowed for a fee and delivered to the second part. When your first action finally arrived (or came from another source), the lender received the same number of shares of the collateral they lent. Securities lending is generally carried out between brokers and/or dealers and not between individual investors. To complete the transaction, a securities lending agreement, called a loan agreement, must be concluded. This defines the terms of the loan, including the term, the lender`s fees and the type of guarantee. Securities lending has been issued for more than 40 years. The first formal equity financing operations took place in the City of London in the early 1960s, but by the early 1980s they really took off as an industry. The practice has shifted from a back-office operation to a joint investment practice that increases returns for large financial institutions. To learn more about how to master securities lending concepts through real-world applications and advance your career as a world-class financial market analyst, download our CMSA program brochure® below: Empirical Evidence Shows Securities Lending Helps Provide Liquidity in OTC Markets.

It facilitates various transactions that allow investors or institutions to hedge, take a tailor-made position or in arbitrage situations. Securities lending is a common practice in insurance companies. Insurers can make long-term investments to reconcile them with insurance liabilities. Thus, securities are not actively traded. It offers insurance companies the opportunity to lend the securities and earn fees to increase returns. Lenders of valuable assets usually ask for collateral, which is a kind of insurance for the lender. In the case of securities lending, the guarantee may be in cash or, more often, in other securities. In order to avoid operational risks, securities lent and those provided as collateral shall be transferred simultaneously. Exchanging one security for another at the same time can be technically difficult, so securities lending is often done in two stages. First, the requested collateral is lent to the borrower, who transfers the cash collateral to the lender. Second, the cash guarantee is returned to the borrower, who exchanges it for a securities guarantee.

The end result is neutral in terms of cash flow: the borrower has only the securities he needs and the lender only the guarantee. Borrowers pay fees that can vary greatly depending on the collateral borrowed, who lends to whom, the duration, etc. In addition, borrowers sometimes have to pay to obtain the collateral needed for the securities lending business, which can mean upgrading “normal” securities to high-value securities or raising additional funds. After all, borrowers sometimes face legal and administrative costs when they want to start borrowing from a new lender. Securities lending is important for short selling, where an investor borrows securities to sell immediately. The borrower hopes to profit by selling the security and buying it back later at a lower price. Since the property has been temporarily transferred to the borrower, the borrower is required to pay all dividends to the lender. In these transactions, the lender is compensated in the form of agreed fees and also receives the guarantee at the end of the transaction. This allows the lender to increase its returns by receiving these fees. The borrower benefits from the opportunity to make a profit by short selling the securities.

When a security is loaned, the title of the title passes to the borrower. [7] This means that the borrower has the advantage of holding the security as he becomes the legal and effective owner in his own right. In particular, the borrower receives all coupon and/or dividend payments as well as all other rights such as voting rights. In most cases, these dividends or coupons must be returned to the lender in the form of a so-called “artificial dividend”. Sometimes security is only needed temporarily, whether it`s just for a day or for a few weeks. If this is the case, it is often cheaper, faster and/or less risky to borrow a security than to buy it directly. There are a number of reasons to hold securities temporarily: securities lending ranks securities according to their availability for the loan. Highly liquid securities are considered “light”; These products are easy to find on the market if someone decides to borrow them to sell them short.

Illiquid securities in the market are classified as “hard”. Due to various regulations, a short selling transaction in the United States and other countries must be preceded to locate the security and quantity one might wish to sell short to avoid naked short selling. However, the credit intermediary may draw up a list of securities for which such location is not required. This list is called an easy-to-borrow list (abbreviated as ETB) and is also called general insurance. Such a list is drawn up by broker-dealers on the basis of “reasonable assurance”[8] that the securities on the list will be readily available at the client`s request. However, if a warranty on the list cannot be delivered as promised (an “absence” would occur), the reasonable grounds assumption does not apply. In order to better justify such assumptions, the ETB list must not be older than 24 hours. In a sample transaction, a large institutional asset manager with a position in a particular stock allows these securities to be borrowed from a financial intermediary, usually an investment bank, principal dealer or other broker-dealer acting on behalf of one or more clients.

After borrowing the stock, the customer – the short seller – was able to sell it short. Their goal is to buy back the stock at a lower price and thus make a profit. By selling the borrowed shares, the short seller generates money, which becomes a guarantee that is paid to the lender. The current value of the guarantee would be placed on the market on a daily basis, so that it would exceed the value of the loan by at least 2%. NB: 2% is the standard margin rate in the US, while 5% is more common in Europe. Often, a bank acts as a lender, receiving a cash guarantee and investing it until it needs to be returned. The income from the reinvested cash guarantee is divided by paying a discount to the borrower and then dividing the balance between the securities lender and the agent bank. This allows large mutual funds to generate additional income from their portfolio holdings. If the lender is a pension plan, the transaction may be required to comply with various exemptions under the Employee Retirement Income Security Act, 1974 (ERISA). [6] The Agreement is a contract that is enforceable under applicable law, which is often set forth in the Agreement.

As payment for the loan, the parties negotiate fees that are expressed as an annualized percentage of the value of the borrowed securities. If the agreed form of collateral is in cash, the fee may be specified as a “short discount,” meaning that the lender receives all accrued interest on the cash collateral and “repays” the borrower an agreed interest rate. Major securities lenders include mutual funds, insurance companies, pension plans, exchange-traded funds and other large investment portfolios. [2] Securities lending also deals with hedging, arbitrage and default-based borrowing. In all of these scenarios, the benefit to the securities lender is either to generate a low return on the securities currently held in its portfolio, or potentially to meet cash financing needs. Securities lenders, often referred to simply as dry lenders, are institutions that have access to “loanable” securities. These may be asset managers who manage many securities, custodians who hold securities on behalf of third parties, or third-party lenders who automatically access securities through the custodian bank of the asset owner. The international trade organization for the securities lending industry is the International Securities Lending Association.

According to a June 2004 survey, €5.99 billion of securities were available to its members for loans. .