Blocked Account Control Agreement Template for Belgium

A Blocked Account Control Agreement is a crucial document in secured financing transactions under Belgian law, used when a lender or security holder requires control over a debtor's bank account as collateral. The agreement is particularly relevant in project finance, acquisition finance, and other secured lending scenarios where cash flow control is essential for security. It establishes the mechanism by which the account bank acknowledges and agrees to comply with the secured party's control rights over the account, while defining the circumstances under which the account owner may access the account. The document ensures compliance with Belgian financial collateral laws and banking regulations, including the Belgian Financial Collateral Law of 15 December 2004 and the Belgian Banking Law of 25 April 2014, while also addressing relevant EU directives and regulations.

1. Parties: Identifies and defines the Account Owner, Account Bank, and Secured Party/Beneficiary

2. Background: Explains the context of the agreement, including reference to any underlying credit or security agreements

3. Definitions: Defines key terms used throughout the agreement, including Account, Control, Instructions, etc.

4. Account Control: Establishes the basic control arrangement and rights over the blocked account

5. Operation of the Account: Details the procedures for operating the account, including authorized instructions and authentication

6. Rights and Duties of the Account Bank: Specifies the bank's obligations, including following instructions and maintaining the account

7. Security Interest: Confirms the security interest of the Secured Party over the account

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

9. Fees and Expenses: Details the fees payable to the Account Bank and allocation of expenses

10. Liability and Indemnification: Limits the Account Bank's liability and provides for indemnification

11. Term and Termination: Sets out the duration of the agreement and termination procedures

12. Notices: Specifies how formal communications between parties should be made

13. Governing Law and Jurisdiction: Specifies Belgian law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including amendments, assignments, severability