Control Agreement Generator for Australia

A Control Agreement lets a lender maintain security over a borrower's bank account while still allowing the borrower to access and use their funds. It's a three-way contract between a lender, borrower, and the bank holding the account, commonly used in Australian business financing and secured lending arrangements.

Under Australian secured transactions law, these agreements give lenders important rights - they can monitor account activity and step in to freeze funds if the borrower defaults. Banks must follow the lender's instructions about the account once certain trigger events occur. This makes Control Agreements vital tools for protecting a lender's security interest while keeping business operations running smoothly.

Consider implementing a Control Agreement when lending against business assets that include bank accounts in Australia. These agreements become essential in secured financing deals where you need to maintain security over a borrower's operating accounts while letting them continue normal business activities.

The agreement proves particularly valuable when financing working capital, inventory, or receivables - situations where cash flows through the borrower's accounts regularly. It gives lenders the security they need while avoiding the operational disruption of account freezes. Most major Australian banks are familiar with these arrangements, making them practical tools for asset-based lending.

• Account Control Agreement Collateral: Used for securing financial accounts as collateral, giving lenders direct control rights over specified bank accounts while maintaining borrower access for daily operations
• Quality Control Agreement: Focuses on maintaining product or service quality standards between parties, often used in manufacturing or supply chain relationships to establish quality monitoring and compliance procedures

• Lenders and Financial Institutions: Use Control Agreements to protect their security interests in borrower accounts while enabling continued business operations
• Business Borrowers: Sign these agreements to maintain access to their accounts while securing financing
• Banks and Account Providers: Execute and implement the agreement's terms, managing account access and following instructions from secured parties
• Corporate Lawyers: Draft and negotiate the agreements to protect their clients' interests and ensure compliance with Australian security laws
• Business Managers: Oversee daily operations under the agreement's framework while maintaining required reporting and compliance

• Account Details: Gather complete information about the bank accounts being controlled, including account numbers, bank details, and authorized signatories
• Security Arrangements: Document the existing security interests and lending terms that necessitate the Control Agreement
• Operating Rules: Define how the account can be accessed and used during normal business operations
• Default Triggers: Specify events that allow the lender to exercise control rights over the account
• Bank Requirements: Check your bank's specific requirements for Control Agreements - most Australian banks have standard forms they prefer
• Document Generation: Use our platform to create a legally-sound Control Agreement that includes all mandatory elements and meets Australian legal requirements

• Party Details: Full legal names and contact information for the lender, borrower, and bank
• Account Information: Specific account numbers, types, and locations covered by the agreement
• Control Rights: Clear terms outlining when and how the secured party can exercise control over the accounts
• Operating Procedures: Day-to-day account access rules and reporting requirements
• Default Provisions: Specific events triggering the lender's right to freeze or control accounts
• Bank's Obligations: Explicit duties regarding account access, notifications, and following instructions
• Governing Law: Statement confirming Australian law applies and specifying jurisdiction for disputes

A Control Agreement differs significantly from an Access Control Policy in both scope and legal effect. While both deal with controlling access to assets, they serve distinct purposes in Australian business operations.

• Legal Structure: Control Agreements are binding contracts between three parties (lender, borrower, bank), while Access Control Policies are internal documents setting organizational rules
• Enforcement Power: Control Agreements create legally enforceable rights for secured lenders, whereas Access Control Policies establish internal guidelines without third-party rights
• Primary Purpose: Control Agreements secure financial interests in specific accounts, while Access Control Policies manage general security and access across an organization
• Implementation: Control Agreements require formal execution by all parties, but Access Control Policies can be updated unilaterally by the organization as needed