Deposit Pledge Agreement for Singapore

Deposit Pledge Agreement Template for Singapore

A Deposit Pledge Agreement under Singapore law is a security arrangement where cash deposits are pledged as collateral. This document establishes the legal framework for creating a security interest over bank deposits, compliant with Singapore's Securities and Futures Act and Banking Act. It includes provisions for enforcement rights, representations and warranties, and typically requires notice to and acknowledgment from the deposit-holding bank.

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What is a Deposit Pledge Agreement?

The Deposit Pledge Agreement is a crucial security document used in Singapore when parties need to create security over cash deposits. It's commonly used in financing transactions, project security arrangements, and other commercial contexts where cash collateral is required. The agreement complies with Singapore's regulatory framework, particularly the Securities and Futures Act and Banking Act, and typically includes detailed provisions about the pledge mechanism, maintenance of the deposit, enforcement rights, and the respective obligations of the pledgor and pledgee.

What sections should be included in a Deposit Pledge Agreement?

1. Parties: Identifies pledgor and pledgee with full legal details

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

3. Definitions: Key terms used throughout the agreement including deposit, secured obligations, and enforcement events

4. Pledge: Core pledge provisions and deposit details, including scope and nature of security interest

5. Representations and Warranties: Standard declarations about deposit ownership, authority, and absence of encumbrances

6. Covenants: Ongoing obligations of the pledgor regarding the deposit and maintenance of security

7. Events of Default: Circumstances allowing enforcement of the pledge

8. Enforcement: Rights and procedures upon default, including realization of security

9. Governing Law and Jurisdiction: Choice of Singapore law and jurisdiction provisions

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

1. Security Trustee Provisions: Required when pledge is held on trust for multiple beneficiaries

2. Bank's Rights: Include when deposit-holding bank has specific requirements or rights

3. Currency Provisions: Required for foreign currency deposits to address exchange rate risks

4. Tax Provisions: Include when tax implications need specific addressing for the pledge arrangement

What schedules should be included in a Deposit Pledge Agreement?

1. Deposit Account Details: Specific information about pledged accounts including account numbers and deposit amounts

2. Form of Notice: Standard notice template to be sent to bank regarding the pledge

3. Form of Acknowledgment: Template for bank's acknowledgment of the pledge notice

4. Corporate Authorizations: Required corporate approvals and resolutions for the pledge

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

Singapore

Publisher

Genie AI

Document Type

Security Agreement

Cost

Free to use
Industries

Securities and Futures Act (SFA): Primary legislation governing securities arrangements, financial collateral, and security interests perfection requirements in Singapore. Critical for establishing valid security arrangements over financial assets.

Banking Act: Key legislation governing banking regulations in Singapore, including rules on bank deposits, requirements for pledging bank accounts, and restrictions on deposit assignments.

Companies Act: Fundamental corporate legislation specifying requirements for corporate pledgors/pledgees, registration requirements for charges, and corporate authority requirements for security arrangements.

Contracts Act: Basic legislation governing contract formation in Singapore, including principles of contract formation, consideration requirements, and contractual capacity rules.

Property Law Act: Legislation governing security interests, creation and enforcement of pledges, and priority rules in Singapore's property law framework.

Personal Property Securities Laws: Legal framework governing personal property security interests, including perfection requirements, priority rules, and enforcement rights.

Common Law Principles: Established case law and principles regarding pledges, security interests, and their enforcement in Singapore's legal system.

Insolvency Laws: Legal framework governing the treatment of security interests and pledges in the event of insolvency or bankruptcy.

ACRA Registration Requirements: Regulatory requirements for registering certain security interests with the Accounting and Corporate Regulatory Authority of Singapore.

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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