During the term of a loan, the lender relinquishes his right to?

The correct choice reflects the fundamental nature of lender-borrower relationships in securities lending. When a lender executes a securities loan, they transfer ownership rights of the loaned securities to the borrower. This includes the right to exercise voting rights associated with those securities. Since the borrower now holds the securities, they also gain the ability to vote them by proxy, which is a critical aspect of ownership. Thus, the lender relinquishes their right to vote the loaned securities during the term of the loan.

In contrast, although the lender may not directly receive dividends (payable) on the loaned securities during the loan period, they are typically compensated with a fee or collateral that accounts for these dividends. The lender still has the right to any stock dividends paid, as these would typically be credited to the lender despite the temporary transfer of ownership. Therefore, the act of voting is uniquely tied to ownership, making it the key right that the lender relinquishes during the loan period.