Securities lending: lender retains beneficial interest while borrower must return equivalent securities with accrued corporate benefits.

The scheme mandates that lenders and borrowers contract through an approved intermediary; deposited securities retain the lender's beneficial interest and corporate benefits accrue to the lender. The approved intermediary issues receipts, may act as trustee, is authorised to lend deposited securities and, unless agreed otherwise, guarantees return of equivalent securities and accrued corporate benefits, remaining liable for borrower default. Borrowers obtain legal title but must return equivalent securities of the same type and class with all accrued corporate benefits and cannot discharge obligations by cash. Collateral, fees, recordkeeping, default liquidation of collateral, and notification of authorities are required.

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