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Purchase Money Security Agreement Template for Singapore

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Key Requirements PROMPT example:

Purchase Money Security Agreement

"Need a Purchase Money Security Agreement for our company's purchase of manufacturing equipment worth SGD 2.5 million from ABC Industries, with quarterly payments over 3 years starting March 2025 and including specific maintenance requirements for the equipment."

What is a Purchase Money Security Agreement?

The Purchase Money Security Agreement is essential when a party requires financing to purchase goods or assets in Singapore. It provides the financier with a security interest in the purchased property, ensuring priority over other creditors under the Personal Property Securities Act 2023. This document is commonly used in commercial transactions where immediate full payment isn't possible, detailing the purchase terms, payment schedule, and the secured party's rights in case of default. The agreement must comply with Singapore's registration requirements and security interest perfection rules.

What sections should be included in a Purchase Money Security Agreement?

1. Parties: Identification of secured party and debtor

2. Background: Context of the purchase and security arrangement

3. Definitions: Key terms used throughout the agreement

4. Grant of Security Interest: Creation and scope of the security interest

5. Description of Collateral: Detailed description of the secured property

6. Purchase Money Obligations: Payment terms and conditions

7. Representations and Warranties: Statements of fact by the debtor

8. Covenants: Ongoing obligations of the debtor

9. Default Provisions: Events of default and consequences

10. Enforcement Rights: Secured party's rights upon default

What sections are optional to include in a Purchase Money Security Agreement?

1. Insurance Requirements: Insurance obligations for the collateral when the secured property requires insurance protection

2. Third Party Rights: Rights of third parties in relation to the security interest when third parties have potential claims on the collateral

3. Cross-Default Provisions: Links to other agreements when multiple agreements exist between parties

What schedules should be included in a Purchase Money Security Agreement?

1. Schedule of Collateral: Detailed listing and description of secured property

2. Payment Schedule: Detailed payment terms and dates

3. Registration Forms: Forms required for PPSA registration

4. Insurance Certificates: Proof of insurance coverage for collateral

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

Personal Property Securities Act 2023: Singapore's primary legislation governing security interests in personal property, including creation, perfection, enforcement, and priority rules for security interests. Essential for PMSA registration and enforcement.

Sale of Goods Act: Governs the sale of goods and transfer of title in Singapore. Relevant for the underlying purchase transaction in a PMSA.

Companies Act: Regulates company-related aspects including charges registration and document execution requirements when parties are companies.

Banking Act: Provides regulatory framework for financial institutions involved in the transaction, including relevant compliance requirements.

Consumer Protection (Fair Trading) Act: Ensures consumer protection and fair trading practices if the PMSA involves consumer transactions.

Contract Law: Common law principles as applied in Singapore governing contract formation, terms, and enforcement.

Moneylenders Act: Regulates moneylending activities including licensing requirements and regulations if applicable to the financing arrangement.

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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