STOCK LOAN REBATE

Amount paid by a stock lender to a borrower for setting up cash collateral in borrowing a stock. It comes from reinvesting this cash collateral by the stock lender, offsetting portions of the stock loan fee. The rebate amount, as well as the parameters of the stock loan, is determined prior to a Securities Lending Agreement between the lender and borrower. The rebate is only paid in the event of a cash collateral that is only offered to large clients.