Title Transfer Collateral Agreement Template for Belgium

The Title Transfer Collateral Agreement (TTCA) is essential for financial institutions and corporations operating in Belgium who need to manage financial collateral arrangements. This document type is commonly used in securities lending, repurchase agreements, and derivatives trading, where one party transfers full ownership of collateral to another party while maintaining the right to equivalent collateral return upon satisfying the secured obligations. The agreement must comply with the Belgian Financial Collateral Law of 2004, which implements the EU Financial Collateral Directive, providing strong legal protection and enforcement rights. It includes detailed provisions on collateral valuation, substitution rights, income payments, and default scenarios, making it particularly relevant for sophisticated financial transactions requiring robust collateral management.

1. Parties: Identification of the parties entering into the agreement, including their full legal names, registration details, and addresses

2. Background: Context of the agreement, relationship between the parties, and reference to any master agreement or other related arrangements

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Title Transfer: Core provisions establishing the transfer of title to collateral, including the mechanics and timing of transfers

5. Collateral Requirements: Specifications of eligible collateral, valuation methods, and maintenance of collateral value

6. Transfer Obligations: Obligations regarding the delivery and return of collateral, including timing and procedure

7. Substitution Rights: Rights and procedures for substituting collateral

8. Income and Distributions: Treatment of income, dividends, or other distributions on collateral

9. Events of Default: Definition of events of default and their consequences

10. Close-out and Set-off Rights: Procedures and rights upon early termination or default

11. Representations and Warranties: Standard and specific representations and warranties of the parties

12. Tax Provisions: Treatment of taxes related to collateral transfers and income

13. Notices: Communication requirements and contact details

14. Governing Law and Jurisdiction: Specification of Belgian law as governing law and jurisdiction provisions