Cross Collateral Agreement for Australia

Cross Collateral Agreement Template for Australia

A comprehensive legal document governed by Australian law, particularly the Personal Property Securities Act 2009 (Cth), that enables multiple assets or properties to serve as collective security for one or more loans or obligations. The agreement details how different security interests secure various obligations, establishes priority arrangements, and ensures compliance with Australian secured transactions law. It includes provisions for registration on the Personal Property Securities Register (PPSR) and addresses both the rights of secured parties and the obligations of security providers.

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What is a Cross Collateral Agreement?

A Cross Collateral Agreement is essential in Australian secured lending transactions where multiple assets or properties are used to secure various loans or obligations. This document is commonly used when a lender requires additional security over multiple assets, or when consolidating security arrangements across different facilities. The agreement must comply with the Personal Property Securities Act 2009 (Cth) and other relevant Australian legislation, including consumer protection laws where applicable. It typically includes detailed provisions about the nature of security interests, cross-collateralization arrangements, priority structures, and enforcement mechanisms. The document is particularly important in complex lending arrangements, refinancing situations, or when dealing with multiple borrowing entities within a corporate group.

What sections should be included in a Cross Collateral Agreement?

1. Parties: Identifies all parties to the agreement including secured party(ies) and grantor(s)

2. Background: Outlines the context of the agreement, existing facilities, and purpose of cross-collateralization

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles, including PPSA-specific terminology

4. Grant of Security Interest: Creates and documents the security interests over all relevant collateral

5. Cross-Collateralization Provisions: Establishes how different security interests secure multiple obligations

6. Secured Obligations: Defines all obligations secured by the collateral

7. Representations and Warranties: Grantor's declarations regarding ownership, authority, and status of collateral

8. Undertakings: Ongoing obligations of the grantor regarding maintenance and dealing with collateral

9. Events of Default: Circumstances constituting default under the agreement

10. Enforcement: Rights and remedies of the secured party upon default

11. Power of Attorney: Appointment of secured party as attorney for enforcement purposes

12. PPSA Provisions: Specific provisions required under the Personal Property Securities Act

13. Notices: Requirements and procedures for giving notices under the agreement

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

What sections are optional to include in a Cross Collateral Agreement?

1. Priority Arrangements: Required when multiple secured parties are involved, establishing priority between different security interests

2. Consumer Credit Provisions: Required when the agreement involves consumer credit, incorporating NCCP Act requirements

3. Foreign Law Compliance: Required when collateral is located in multiple jurisdictions

4. Trust Provisions: Required when any party acts in capacity as trustee

5. Special Asset Provisions: Required for specific types of collateral (e.g., intellectual property, serial numbered goods)

6. Guarantee Provisions: Required when the agreement includes personal or corporate guarantees

7. Set-off Rights: Optional provisions for set-off rights between different facilities

8. Insurance Requirements: Detailed insurance requirements for specific types of collateral

What schedules should be included in a Cross Collateral Agreement?

1. Schedule 1 - Secured Property: Detailed description of all collateral subject to security interests

2. Schedule 2 - Secured Obligations: List and details of all secured facilities and obligations

3. Schedule 3 - Existing Security Interests: Details of any pre-existing security interests affecting the collateral

4. Schedule 4 - Form of PPSR Registration: Agreed form of PPSR registration details

5. Schedule 5 - Special Terms for Specific Collateral: Any special terms applying to particular types of collateral

6. Appendix A - Compliance Checklist: Checklist for ongoing compliance requirements

7. Appendix B - Required Forms: Standard forms for notices, requests, and consents under the agreement

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

Jurisdiction

Australia

Publisher

Genie AI

Document Type

Security Agreement

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Real Estate & Property

Commercial Lending

Asset Finance

Agricultural Finance

Construction & Development

Small Business Finance

Consumer Finance

Relevant Teams

Legal

Credit Risk

Commercial Banking

Compliance

Security Operations

Portfolio Management

Business Banking

Asset Finance

Property Finance

Documentation

Loan Operations

Relevant Roles

Credit Manager

Loan Officer

Risk Manager

Commercial Banking Manager

Legal Counsel

Compliance Officer

Security Trustee Officer

Portfolio Manager

Relationship Manager

Credit Analyst

Property Finance Manager

Asset Finance Manager

Security Documentation Officer

Industries
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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