Master Security Agreement for India

Master Security Agreement Template for India

A comprehensive security agreement governed by Indian law that establishes and regulates the creation, perfection, and enforcement of security interests over various types of assets. The agreement complies with Indian security laws including the SARFAESI Act, Companies Act, and other relevant legislation, providing a framework for secured lending transactions. It includes detailed provisions for security creation, representations, covenants, enforcement mechanisms, and addresses both present and future security interests, making it suitable for complex financing arrangements in the Indian jurisdiction.

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What is a Master Security Agreement?

The Master Security Agreement is a fundamental document in secured financing transactions under Indian law, typically used when a borrower or obligor grants security interests over its assets to secure financial obligations. This agreement serves as the primary security document that establishes the framework for creating, perfecting, and enforcing security interests across various asset classes. It is designed to comply with Indian security laws, including the SARFAESI Act 2002, Companies Act 2013, and Registration Act 1908, among others. The document is particularly relevant in syndicated lending, project finance, and corporate finance transactions where multiple security interests need to be created and managed under a single framework. It includes comprehensive provisions for present and future security interests, making it adaptable for ongoing financing relationships while ensuring compliance with Indian regulatory requirements.

What sections should be included in a Master Security Agreement?

1. Parties: Identification of the security provider(s) and security trustee/secured parties

2. Background: Context of the agreement, reference to underlying facilities/obligations being secured

3. Definitions and Interpretation: Comprehensive definitions of terms used and interpretation rules

4. Security Interest Creation: Core provisions creating the security interest over the secured assets

5. Secured Obligations: Definition and scope of the obligations being secured

6. Representations and Warranties: Standard and security-specific representations regarding authority, ownership, and assets

7. Covenants: Positive and negative undertakings regarding the secured assets and security

8. Further Assurance: Obligations to perfect security and execute additional documents

9. Enforcement: Rights and remedies upon default, including SARFAESI Act provisions

10. Power of Attorney: Appointment of security trustee as attorney for security-related actions

11. Payments and Application: Rules for payment and application of proceeds

12. Indemnities: Standard and security-specific indemnities

13. Changes to Parties: Transfer and assignment provisions

14. Notices: Communication procedures and contact details

15. Miscellaneous: Standard boilerplate provisions

16. Governing Law and Jurisdiction: Indian law as governing law and jurisdiction provisions

What sections are optional to include in a Master Security Agreement?

1. Security Trustee Provisions: Required when security is held by a trustee for multiple secured parties

2. Priority Arrangements: Required when there are multiple security interests or intercreditor arrangements

3. Tax Provisions: Detailed tax provisions when security creation has significant tax implications

4. Foreign Party Provisions: Additional provisions required for foreign security providers or secured parties

5. Currency Provisions: Required when secured obligations are in multiple currencies

6. Insurance: Detailed insurance requirements when secured assets require specific insurance coverage

7. Special Asset Provisions: Specific provisions for unique asset types (intellectual property, shares, etc.)

What schedules should be included in a Master Security Agreement?

1. Security Assets Schedule: Detailed description of all assets subject to security

2. Forms of Notices and Acknowledgments: Standard forms for perfection of security over specific assets

3. Security Provider Details: Corporate and registration details of security providers

4. Secured Party Details: Details of secured parties and sharing arrangements

5. Forms of Transfer Certificates: Standard forms for transfers of security interests

6. Required Registrations and Filings: List of all required registrations and filings for perfection

7. Existing Security Interests: Details of permitted existing security over the assets

8. Form of Power of Attorney: Specific form of power of attorney for security enforcement

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

India

Publisher

Genie AI

Document Type

Security Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking

Financial Services

Infrastructure

Real Estate

Manufacturing

Technology

Healthcare

Energy

Telecommunications

Retail

Transportation

Mining

Agriculture

Construction

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretarial

Credit

Banking Operations

Corporate Finance

Security Operations

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Risk Manager

Compliance Officer

Treasury Manager

Security Trustee Officer

Corporate Finance Manager

Credit Risk Officer

Banking Operations Manager

Legal Director

Company Secretary

Facility Agent

Security Agent

Transaction Manager

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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