Collateral Management Agreement Template for Austria

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Key Requirements PROMPT example:

Collateral Management Agreement

"I need a Collateral Management Agreement governed by Austrian law for a private investment fund acting as collateral provider with a major Austrian bank as collateral receiver, with specific provisions for managing both securities and cash collateral, to be effective from March 2025."

Document background
The Collateral Management Agreement serves as a critical legal framework for financial institutions and corporations operating under Austrian jurisdiction, establishing the terms and procedures for managing financial collateral arrangements. This document is essential when parties need to establish secure arrangements for posting, monitoring, and enforcing financial collateral, particularly in lending, trading, or security arrangements. It ensures compliance with the Austrian Financial Collateral Act, Banking Act, and relevant EU regulations while providing operational clarity on collateral valuation, margin calls, and enforcement procedures. The agreement is particularly relevant in the context of increasing regulatory requirements for collateralization and risk management in financial transactions.
Suggested Sections

1. Parties: Identification of the contracting parties including their full legal names, registration details, and addresses

2. Background: Context of the agreement and relationship between the parties

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including Austrian law-specific terms

4. Scope and Purpose: Defines the scope of collateral management services and purpose of the agreement

5. Appointment and Authority: Appointment of collateral manager and scope of authority

6. Collateral Requirements: Specifications for eligible collateral types, quality, and quantum

7. Delivery and Settlement: Procedures for delivering, transferring, and settling collateral

8. Valuation: Methods and frequency of collateral valuation, including dispute resolution

9. Margin Calls and Transfers: Processes for margin calls, timing, and transfer requirements

10. Substitution Rights: Rights and procedures for substituting collateral

11. Income and Voting Rights: Treatment of income on collateral and exercise of voting rights

12. Custody and Safekeeping: Requirements for custody and safekeeping of collateral

13. Representations and Warranties: Standard and specific representations and warranties by each party

14. Fees and Expenses: Fee structure and responsibility for expenses

15. Default and Enforcement: Events of default and enforcement procedures compliant with Austrian law

16. Liability and Indemnification: Scope of liability and indemnification obligations

17. Term and Termination: Duration, termination events, and consequences of termination

18. Confidentiality: Confidentiality obligations and permitted disclosures

19. Notices: Communication methods and contact details

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

21. General Provisions: Standard boilerplate clauses including amendments, assignments, and severability

Optional Sections

1. Regulatory Reporting: Include when parties are subject to specific regulatory reporting requirements

2. Tax Provisions: Include when tax implications need specific addressing, especially for cross-border arrangements

3. Third-Party Service Providers: Include when external service providers are involved in collateral management

4. Electronic Trading and Systems: Include when electronic trading platforms or specific systems are used

5. Business Continuity: Include when specific business continuity requirements are needed

6. Data Protection: Include when personal data processing is involved, requiring GDPR compliance

7. Anti-Money Laundering: Include when specific AML obligations need to be addressed

8. Force Majeure: Include when specific force majeure provisions are required beyond standard provisions

Suggested Schedules

1. Schedule 1 - Eligible Collateral: Detailed list of acceptable collateral types and criteria

2. Schedule 2 - Valuation Procedures: Detailed methodology for valuation of different types of collateral

3. Schedule 3 - Fee Schedule: Detailed breakdown of fees and charges

4. Schedule 4 - Operating Procedures: Detailed operational procedures and workflows

5. Schedule 5 - Contact Details: List of authorized persons and contact information

6. Schedule 6 - Form of Notices: Standard forms for various notices including margin calls

7. Appendix A - Security Account Details: Details of relevant security accounts and custodians

8. Appendix B - Reporting Requirements: Specifications for required reports and their frequency

Authors

Alex Denne

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

Relevant legal definitions
Relevant Industries

Banking

Financial Services

Investment Management

Insurance

Asset Management

Securities Services

Fund Administration

Treasury Services

Capital Markets

Corporate Banking

Relevant Teams

Legal

Risk Management

Compliance

Treasury

Operations

Collateral Management

Portfolio Management

Credit Risk

Securities Operations

Financial Control

Documentation

Trading

Client Relations

Relevant Roles

Legal Counsel

Risk Manager

Compliance Officer

Treasury Manager

Operations Manager

Collateral Manager

Portfolio Manager

Credit Risk Officer

Securities Operations Officer

Financial Controller

Documentation Specialist

Relationship Manager

Credit Administrator

Head of Trading

Senior Compliance Manager

Industries
Austrian Financial Collateral Act (Finanzsicherheiten-Gesetz): Implements EU Financial Collateral Directive (2002/47/EC) and governs financial collateral arrangements, including requirements for creation, perfection, and enforcement of financial collateral
Austrian Civil Code (ABGB - Allgemeines Bürgerliches Gesetzbuch): Contains fundamental contract law principles, including formation of contracts, performance obligations, and general provisions on securities and pledges
Austrian Banking Act (BWG - Bankwesengesetz): Regulates banking activities and includes provisions relevant to collateral arrangements involving credit institutions
Austrian Insolvency Code (IO - Insolvenzordnung): Contains provisions on the treatment of collateral in insolvency proceedings and close-out netting arrangements
Capital Requirements Regulation (CRR) as applicable in Austria: EU regulation directly applicable in Austria governing capital requirements for credit institutions, including provisions on eligible collateral
Austrian Securities Deposit Act (DepotG - Depotgesetz): Regulates the custody and administration of securities, relevant for collateral arrangements involving securities
Austrian Stock Exchange Act (BörseG - Börsegesetz): Contains provisions relevant to listed securities used as collateral and market trading regulations
Financial Market Money Laundering Act (FM-GwG): Provides requirements for customer due diligence and anti-money laundering measures in financial collateral arrangements
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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