Account Control Agreement Template for Belgium

The Account Control Agreement is a crucial security document used in Belgian financial transactions where a lender or security agent requires control over a borrower's bank accounts as collateral. It is particularly relevant in the context of secured lending, project finance, and structured finance transactions under Belgian law. The agreement details the mechanisms for account control, the rights and obligations of all parties, and the procedures for exercising control over the accounts. It must comply with the Belgian Financial Collateral Law of December 15, 2004, and related banking regulations. The document is typically used alongside other security documents and credit agreements, forming part of a broader security package. The Account Control Agreement becomes especially important in enforcement scenarios, providing the secured party with a clear legal basis for taking control of the accounts while protecting the account bank's position.

1. Parties: Identification of the Account Bank, Account Holder, and Secured Party

2. Background: Context of the agreement, including reference to the underlying security agreement and purpose of the account control arrangement

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

4. Account Control and Security: Core provisions establishing control over the account and confirming security interest

5. Bank's Rights and Obligations: Account Bank's duties, including handling of instructions and maintaining the account

6. Notice of Exclusive Control: Process and effect of Secured Party exercising exclusive control over the account

7. Instructions and Communications: Procedures for giving and acting on instructions regarding the account

8. Representations and Warranties: Standard representations from all parties regarding authority, capacity, and account status

9. Bank's Liens and Rights of Set-off: Provisions addressing the Bank's rights over the account

10. Fees and Expenses: Payment obligations for maintaining the account control arrangement

11. Indemnification: Indemnification obligations between the parties

12. Term and Termination: Duration of the agreement and termination procedures

13. Notices: formal requirements for notices under Belgian law and contact details

14. Governing Law and Jurisdiction: Confirmation of Belgian law governance and jurisdiction provisions

15. General Provisions: Standard boilerplate provisions including amendments, severability, and entire agreement