Purchase Security Agreement for Singapore

Purchase Security Agreement Template for Singapore

A Purchase Security Agreement under Singapore law is a legal document that creates a security interest in favor of a seller or lender over specific assets being purchased. It operates within Singapore's robust commercial law framework, particularly under the Securities and Futures Act and Sale of Goods Act. The agreement details the collateral, secured obligations, and enforcement rights, providing protection for the secured party while ensuring compliance with Singapore's security interest registration requirements and enforcement procedures.

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What is a Purchase Security Agreement?

The Purchase Security Agreement is essential in commercial transactions where a party requires security over assets being purchased. This document, governed by Singapore law, establishes the security interest, details the collateral and obligations being secured, and sets out the parties' rights and responsibilities. It's particularly important in financing arrangements where the lender needs protection against default, or in sales where the seller maintains security until full payment. The agreement must comply with Singapore's security interest requirements, including registration where necessary, and provides mechanisms for enforcement in case of default.

What sections should be included in a Purchase Security Agreement?

1. Parties: Identification of secured party and debtor

2. Background: Context of the security arrangement and underlying purchase transaction

3. Definitions: Key terms used throughout the agreement

4. Grant of Security Interest: Express creation of security interest over the collateral

5. Description of Collateral: Detailed description of assets subject to security interest

6. Secured Obligations: Description of obligations being secured

7. Representations and Warranties: Standard assurances regarding ownership and right to grant security

8. Covenants: Ongoing obligations regarding maintenance and protection of collateral

9. Events of Default: Circumstances triggering enforcement rights

10. Enforcement Rights: Rights and remedies upon default

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

1. Insurance Requirements: Obligations to maintain insurance on collateral when physical property requiring insurance is involved

2. Third Party Rights: Provisions regarding rights of third parties when they may have interests in the collateral

3. Registration Requirements: Obligations regarding registration of security interest when registration is required

4. Priority Arrangements: Provisions regarding ranking of security interests when multiple security interests exist

What schedules should be included in a Purchase Security Agreement?

1. Schedule of Collateral: Detailed listing and description of secured assets

2. Form of Notice: Template notices for registration or third party notification

3. Insurance Requirements: Detailed insurance specifications if applicable

4. Form of Security Registration: Required forms for registering security interest

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
Clauses
Industries

Securities and Futures Act (Cap. 289): Primary legislation governing securities, futures, and derivatives trading. Regulates security interests in financial instruments.

Sale of Goods Act (Cap. 393): Regulates sale and purchase of goods, defining rights and obligations of buyers and sellers.

Personal Property Securities Act: Currently in development in Singapore. Will modernize laws regarding security interests in personal property.

Contracts Act (Cap. 53): Establishes fundamental contract formation principles and governs validity and enforceability of agreements.

Companies Act (Cap. 50): Governs corporate matters including registration requirements for charges and corporate authority matters when parties are companies.

Consumer Protection (Fair Trading) Act: Provides consumer protection and fair trading provisions for transactions involving consumers.

Registration of Deeds Act: Establishes requirements for registration of security interests.

Bankruptcy Act and Insolvency, Restructuring and Dissolution Act 2018: Governs priority of security interests in insolvency and enforcement rights in default scenarios.

Common Law Principles: Relevant case law and judicial precedents regarding security interests in Singapore.

International Commercial Practices: Considerations for cross-border transactions and international trade practices.

Industry-specific Regulations: Sector-specific rules and requirements that may affect the security agreement.

Personal Data Protection Act: Governs the collection, use, and disclosure of personal data if involved in the security agreement.

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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