My understanding is that if shares are in a margin account (which my open money account is) then its part of the broker/client agreement that they can be loaned out. Conversely shares held in a Registered Account (RSP, RESP, TFSA) cannot be loaned out.
What I am curious about....is after I move the shares over "in kind"....will they show up right away. I had shares of HMPR in a Registered account (with a different broker) and when HMPR merged with XBKS and adopted the XBKS symbol....the shares didn't show up in my Registered account for close to 2 weeks, when I called to ask why I was told that the shares had to located first....
We shall see what happens.