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A Collateral Account Agreement is essential in secured financing transactions where cash or securities are held as collateral. Used extensively in England and Wales, this agreement establishes the legal framework for maintaining and operating secured accounts, defining the rights and obligations of all parties involved. The document typically supports broader financing arrangements and ensures compliance with English financial regulations and security laws. It includes detailed provisions for account operation, security interests, enforcement rights, and default remedies, making it a crucial document in secured lending and investment transactions.

1. Parties: Identifies all parties to the agreement including the account holder, security holder, and account bank

2. Background: Explains the context and purpose of the agreement, including reference to any related facility agreements

3. Definitions and Interpretation: Defines key terms and establishes interpretation rules for the agreement

4. Account Establishment: Details of the collateral account(s), including account numbers and types

5. Security Interest: Creation and perfection of security interest over the account

6. Operation of Accounts: Rules governing deposits, withdrawals, and account management

7. Rights and Obligations: Responsibilities of each party regarding the account

8. Events of Default: Circumstances constituting default and consequences

9. Enforcement: Rights and procedures following an event of default

10. Representations and Warranties: Standard representations by parties