02-02-2013, 05:52 AM
The times I have seen “stock loan” agreements, it is open ended and can be repaid and returned at any time, on demand from either party. If I agree to loan my shares to someone who is short, my shares would be removed from my account, and I would receive a promissory note from the short (not the broker) that agrees to pay me XX% based upon the value of the current market value of the loaned position. I have never done this with any stock as I would never take a promissory note from someone who 1) has a vested interest in keeping the price down so as to keep their cost down and 2) might just go bankrupt if the stock does what I hope it will.