The Account Pledge Agreement is a key security document used in Australian financing transactions where security over bank accounts is required. It is commonly used in project financings, corporate loans, and other secured lending arrangements where control over cash flows is crucial for the security package. The document ensures compliance with the Personal Property Securities Act 2009 (PPSA) requirements for creating and perfecting security interests over ADI accounts (authorized deposit-taking institution accounts). It includes specific provisions for control arrangements, which are critical for achieving the highest level of perfection under the PPSA, and contains detailed enforcement mechanisms aligned with Australian law. The agreement is typically part of a broader security package and may need to be coordinated with other security documents and intercreditor arrangements.

1. Parties: Identifies the pledgor (account holder), the pledgee (secured party), and the account bank if party to the agreement

2. Background: Sets out the context of the pledge arrangement and references any related facilities or agreements

3. Definitions and Interpretation: Defines key terms including Secured Obligations, Pledged Accounts, and Security Interest, and establishes interpretation principles

4. Creation of Security Interest: Establishes the pledge/security interest over the accounts in compliance with PPSA requirements

5. Secured Obligations: Defines the obligations secured by the account pledge

6. Perfection and Further Assurance: Covers PPSA registration requirements and other perfection steps

7. Representations and Warranties: Standard representations regarding account ownership, capacity to pledge, and absence of other security interests

8. Operation of Accounts: Governs how the pledged accounts will be operated, including withdrawal rights and account bank instructions

9. Control Arrangements: Specifies control mechanisms over the accounts as required under PPSA

10. Events of Default: Lists circumstances that trigger enforcement rights

11. Enforcement: Sets out the pledgee's rights and remedies upon default

12. Power of Attorney: Grants power of attorney to the pledgee for perfection and enforcement purposes

13. Notices: Specifies how formal notices must be given between parties

14. General Provisions: Standard boilerplate provisions including governing law, jurisdiction, and amendments