The Security Account Control Agreement is a specialized agreement used in Hong Kong's financial markets when a lender or other secured party requires control over a securities account as collateral for a financing arrangement. This document is essential for perfecting security interests in securities accounts under Hong Kong law and is commonly used in conjunction with credit facilities, margin lending arrangements, and other secured financing transactions. The agreement details the rights and obligations of all parties, including the securities intermediary's role in maintaining control over the account, the circumstances under which the secured party can exercise exclusive control, and the operational procedures for account management. It must comply with Hong Kong's Securities and Futures Ordinance and related regulations, particularly regarding the handling of securities and client assets.

1. Parties: Identifies the secured party, debtor, and securities intermediary as parties to the agreement

2. Background: Explains the context of the security arrangement and references any related credit or security agreements

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles for the agreement

4. Account Control and Security: Establishes the secured party's control rights over the securities account and confirms the security interest

5. Securities Intermediary's Rights and Obligations: Sets out the duties and responsibilities of the securities intermediary regarding the account

6. Account Operation: Details the procedures for operating the account, including trading restrictions and permitted withdrawals

7. Instructions and Notices: Specifies how parties may give instructions regarding the account and general notice requirements

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

9. Security Interest and Rights: Details the secured party's rights over the account and enforcement procedures

10. Fees and Expenses: Addresses the securities intermediary's fees and allocation of expenses

11. Indemnification: Contains indemnification obligations of the parties

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

13. General Provisions: Contains standard boilerplate provisions including governing law, jurisdiction, and amendments