Account Pledge Agreement Template for Singapore

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Key Requirements PROMPT example:

Account Pledge Agreement

"Need an Account Pledge Agreement under Singapore law for a syndicated loan facility where multiple operating accounts at DBS Bank will be pledged as security, with the security agent acting as pledgee on behalf of a syndicate of five banks by March 2025."

What is a Account Pledge Agreement?

The Account Pledge Agreement is a crucial security document used in Singapore financing transactions where bank accounts serve as collateral. It is commonly used in corporate financing, project finance, and other secured lending arrangements. The agreement must comply with Singapore security and banking regulations, including registration requirements under the Companies Act where applicable. It typically includes detailed provisions on account operation, enforcement rights, and required notices to account banks.

What sections should be included in a Account Pledge Agreement?

1. Parties: Identification of pledgor, pledgee, and any other relevant parties

2. Background: Context of the pledge arrangement and underlying relationship

3. Definitions and Interpretation: Key terms used in the agreement including 'Pledged Account', 'Secured Obligations'

4. Creation of Pledge: Legal provisions establishing the security interest over the account

5. Perfection Requirements: Steps required to perfect the security interest

6. Representations and Warranties: Standard pledgor representations regarding authority, ownership, and no encumbrances

7. Covenants: Ongoing obligations of the pledgor regarding the account

8. Events of Default: Circumstances triggering enforcement rights

9. Enforcement: Rights and procedures for enforcing the security

What sections are optional to include in a Account Pledge Agreement?

1. Account Bank Provisions: Specific provisions relating to the account bank's rights and obligations when account bank is party to the agreement

2. Interest Provisions: Treatment of interest earned on the account when interest-bearing accounts are pledged

3. Currency Provisions: Handling of multiple currencies when account contains multiple currencies

What schedules should be included in a Account Pledge Agreement?

1. Account Details Schedule: Details of pledged accounts including account numbers and banks

2. Form of Notice to Account Bank: Template notice to be sent to account bank regarding the pledge

3. Form of Acknowledgment: Template acknowledgment to be signed by account bank

4. Powers of Attorney: Form of power of attorney for enforcement purposes

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

Clauses
Industries

Securities and Futures Act (Cap. 289): Primary legislation governing securities, financial instruments, and trading of securities in Singapore

Companies Act (Cap. 50): Key legislation governing company operations and registration of charges created by companies in Singapore

Banking Act (Cap. 19): Regulates banking institutions and banking operations, relevant for account pledges involving bank accounts

Personal Property Securities Act: Upcoming legislation (in development) that will modernize personal property security law in Singapore

Conveyancing and Law of Property Act (Cap. 61): Governs the creation and enforcement of security interests in property

Property Act (Cap. 242): Provides framework for property rights and interests in Singapore

Insolvency, Restructuring and Dissolution Act 2018: Governs insolvency proceedings and creditor rights, crucial for determining priority of security interests

Companies (Amendment) Act 2017: Updates to company law affecting corporate security arrangements and registrations

MAS Guidelines and Regulations: Regulatory framework from Monetary Authority of Singapore affecting financial institutions and security arrangements

Perfection Requirements: Legal requirements for ensuring the security interest is properly created and enforceable against third parties

Priority Rules: Rules determining the ranking of competing security interests and claims against the pledged account

Notice Requirements: Mandatory notifications to account banks and other parties for valid creation of security interest

Registration Requirements: Obligations to register security interests with relevant authorities for public notice and priority

Enforcement Rights: Legal framework governing the enforcement of security interests upon default

Set-off Rights: Rules governing the rights of banks and other parties to set off amounts against pledged accounts

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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