Credit Support Agreement Template for Austria

The Credit Support Agreement is essential for financial transactions in Austria where parties need to establish secured trading relationships. It is commonly used in conjunction with ISDA Master Agreements, GMRA, or similar trading frameworks, providing the legal structure for collateral arrangements. The document ensures compliance with Austrian financial regulations, including the Bankwesengesetz (BWG) and Finanzsicherheiten-Gesetz, while incorporating EU requirements. It specifies collateral types, valuation methods, transfer mechanisms, and enforcement procedures, offering protection against counterparty credit risk. The agreement is particularly relevant for financial institutions, investment firms, and corporations engaged in derivatives trading, securities lending, or other financial transactions requiring collateral support.

1. Parties: Identification of the parties entering into the agreement, including their legal names, registration details, and addresses

2. Background: Context of the agreement, reference to any master agreement, and purpose of the credit support arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Credit Support Obligations: Core provisions detailing the obligations to provide credit support, including calculation of exposure and collateral requirements

5. Delivery and Return of Collateral: Procedures and timelines for delivering and returning collateral, including transfer mechanisms

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

7. Rights and Obligations: Detailed rights and obligations of the parties regarding the collateral, including voting rights and income payments

8. Custody Arrangements: Provisions regarding the holding and safekeeping of collateral

9. Enforcement Events: Events triggering enforcement rights and procedures for exercising such rights

10. Set-off and Netting: Provisions for set-off rights and close-out netting arrangements

11. Tax Provisions: Treatment of tax matters related to collateral and transfers

12. Notices: Communication requirements and contact details

13. Governing Law and Jurisdiction: Choice of Austrian law and jurisdiction provisions

14. Miscellaneous: Standard boilerplate provisions including amendments, waivers, and severability