Document background
The Account Pledge Agreement is a fundamental security document used in Austrian financing transactions where bank accounts serve as collateral. It is typically employed in conjunction with credit facilities, loan agreements, or other financing arrangements where the lender requires security over the borrower's bank accounts. The document complies with Austrian pledge law requirements and creates a security interest over specified accounts, including all current and future credit balances. The agreement details the pledge's scope, perfection requirements, operational mechanics, and enforcement provisions. It is essential in both bilateral and syndicated lending structures and must meet specific Austrian law requirements for creating valid and enforceable security interests. The Account Pledge Agreement includes provisions for notifying the account bank and obtaining their acknowledgment, which is crucial for perfection under Austrian law.
