Tri Party Collateral Agreement Template for Philippines

The Tri Party Collateral Agreement is essential in Philippine financial markets where complex collateral arrangements require independent third-party administration. This document is typically used when parties need a sophisticated collateral management structure, particularly in securities lending, repurchase agreements, or secured financing transactions. It establishes the framework for the Collateral Agent to act as an independent intermediary, managing collateral on behalf of the provider and receiver while ensuring compliance with Philippine banking and securities regulations. The agreement includes detailed provisions for collateral eligibility, valuation procedures, margin maintenance, and default handling, all within the context of Philippine law and market practice. It's particularly relevant in scenarios requiring enhanced security and operational efficiency in collateral management.

1. Parties: Identifies and provides details of the three parties: typically the Collateral Provider, Collateral Receiver, and Collateral Agent/Custodian

2. Background: Sets out the context of the agreement and the relationship between the parties

3. Definitions: Defines key terms used throughout the agreement

4. Appointment of Collateral Agent: Details the appointment, role, and responsibilities of the collateral agent

5. Collateral Requirements: Specifies the types of eligible collateral, initial margin requirements, and maintenance requirements

6. Custody Arrangements: Details how the collateral will be held, maintained, and segregated

7. Valuation and Margin: Establishes methods for valuation of collateral and margin calculation procedures

8. Rights and Obligations: Details the specific rights and obligations of each party

9. Substitution and Release: Procedures for substituting collateral and conditions for its release

10. Events of Default: Defines events of default and their consequences

11. Enforcement Rights: Specifies the rights and procedures for enforcing security upon default

12. Fees and Expenses: Details all fees payable and allocation of expenses

13. Representations and Warranties: Standard and specific representations and warranties from each party

14. Liability and Indemnification: Covers liability limitations and indemnification obligations

15. Termination: Procedures and grounds for termination of the agreement

16. Governing Law and Jurisdiction: Specifies applicable law and jurisdiction for disputes

17. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment