Cash Collateral Agreement Template for Austria

The Cash Collateral Agreement is a crucial document used in financial transactions under Austrian law where one party provides cash as collateral to secure obligations owed to another party. This agreement is particularly relevant in the context of derivatives trading, lending arrangements, and other financial transactions where credit risk needs to be managed. The document is structured to comply with the Austrian Financial Collateral Act (Finanzsicherheiten-Gesetz) and related EU regulations, providing legal certainty regarding the creation, perfection, and enforcement of security interests in cash collateral. It includes specific provisions addressing Austrian law requirements for financial collateral arrangements, including insolvency protection, enforcement rights, and procedural requirements. The agreement is designed to be used alongside other financial documentation such as master agreements or facility agreements, providing a comprehensive framework for collateral arrangements in financial transactions.

1. Parties: Identification of the collateral provider and collateral taker, including full legal names and addresses

2. Background: Context of the agreement, reference to any master agreements or related transactions

3. Definitions and Interpretation: Key terms used in the agreement, including specific Austrian law concepts and financial terminology

4. Provision of Collateral: Core provisions regarding the delivery and maintenance of cash collateral, including account details and transfer mechanisms

5. Security Interest: Creation and perfection of the security interest under Austrian law, including any required formalities

6. Maintenance of Collateral: Obligations regarding collateral value, top-up requirements, and return of excess collateral

7. Use and Control of Collateral: Rights regarding the use of cash collateral, including any rehypothecation rights

8. Interest and Payments: Provisions regarding interest on cash collateral and payment mechanics

9. Events of Default: Circumstances constituting default and consequences

10. Enforcement: Rights and procedures for enforcing security interest in compliance with Austrian law

11. Representations and Warranties: Standard and Austrian law-specific representations regarding authority, validity, and enforceability

12. Governing Law and Jurisdiction: Austrian law as governing law and jurisdiction provisions

13. Notices: Communication procedures between parties

14. Miscellaneous: Standard boilerplate provisions adapted to Austrian law requirements