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Pledged Collateral Account Control Agreement Template for Singapore

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Key Requirements PROMPT example:

Pledged Collateral Account Control Agreement

"Need a Pledged Collateral Account Control Agreement under Singapore law for a syndicated loan facility closing on March 15, 2025, where multiple USD accounts at DBS Bank will be pledged as security for a group of international lenders."

What is a Pledged Collateral Account Control Agreement?

The Pledged Collateral Account Control Agreement is essential in secured financing transactions under Singapore law where accounts are used as collateral. It enables lenders to perfect their security interest over deposit accounts by establishing control, a key requirement under Singapore's security interest laws. The agreement details the mechanisms for controlling the account, procedures for enforcement, and the respective rights and obligations of all parties involved. It is commonly used in conjunction with other security documents in corporate lending, structured finance, and other secured transactions.

What sections should be included in a Pledged Collateral Account Control Agreement?

1. Parties: Identifies all parties: Account Bank, Secured Party, and Account Holder

2. Background: Explains the context of the agreement and relationship between parties

3. Definitions: Defines key terms used throughout the agreement

4. Account Control: Details the control mechanisms over the pledged account

5. Security Interest: Establishes the security interest over the account

6. Rights and Obligations: Outlines responsibilities of each party

7. Events of Default: Defines triggering events for enforcement

What sections are optional to include in a Pledged Collateral Account Control Agreement?

1. Foreign Law Considerations: Required if any party or assets are in foreign jurisdictions

2. Additional Secured Parties: Provisions for multiple secured parties when involving syndicated facilities

3. Intermediary Provisions: Required when involving securities intermediaries for securities accounts

What schedules should be included in a Pledged Collateral Account Control Agreement?

1. Account Details Schedule: Lists all controlled accounts and their details

2. Notice Forms: Template notices for account control activation

3. Authorized Persons: List of persons authorized to give instructions

4. Fee Schedule: Details of bank fees and charges

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















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Industries

Securities and Futures Act (Cap. 289): Primary legislation governing securities, futures, and financial markets in Singapore. Crucial for understanding the regulatory framework for securities interests and collateral arrangements.

Companies Act (Cap. 50): Key legislation governing corporate entities in Singapore, including provisions related to creation and registration of charges and security interests by companies.

Banking Act (Cap. 19): Fundamental legislation regulating banking institutions and operations in Singapore, relevant for account control agreements involving banks.

Personal Property Securities Act: Upcoming legislation (when implemented) that will modernize the personal property securities regime in Singapore.

Securities and Futures (Clearing Facilities) Regulations: Subsidiary legislation providing detailed requirements for clearing facilities and related security arrangements.

MAS Notice 603: Regulatory notice on Deposit-taking and Linked Operations, providing guidelines for banks handling customer deposits and related security arrangements.

MAS Guidelines on Control Objectives: Regulatory guidelines specifying procedures for safeguarding customer assets and maintaining proper control over financial assets.

Perfection Requirements: Legal requirements for perfecting security interests under Singapore law, including registration and notice requirements.

Priority Rules: Rules determining the priority of competing security interests under Singapore law.

Security Interest Creation Requirements: Legal requirements for creating valid and enforceable security interests over financial assets and accounts.

Insolvency Laws: Laws governing insolvency scenarios and enforcement of security interests in the event of default or bankruptcy.

Common Law Principles: Relevant common law principles regarding security interests and account control as developed through case law in Singapore.

Banking Regulations: General banking regulations affecting account control and security arrangements over bank accounts.

Cross-border Considerations: Legal implications and requirements when the agreement involves parties or assets in multiple jurisdictions.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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