Collateral Access Agreement for the United States

Collateral Access Agreement Template for United States

A Collateral Access Agreement is a tri-party agreement used in the United States between a lender, landlord, and tenant/borrower that establishes the lender's right to access and remove collateral from the landlord's property in the event of default or enforcement. The agreement typically addresses priorities between the landlord's lien rights and the lender's security interest, notice requirements, and the practical aspects of accessing and removing collateral. It is governed by state property laws and the Uniform Commercial Code, with specific requirements varying by jurisdiction.

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What is a Collateral Access Agreement?

The Collateral Access Agreement serves as a crucial document in secured lending transactions where a borrower maintains collateral on leased premises. It becomes necessary when a lender needs to ensure their ability to access and recover collateral in default scenarios, while managing potential conflicts with landlord rights. This agreement is particularly important in the United States where different state laws may affect lien priorities and access rights. The document typically includes detailed provisions about notice requirements, timing of access, insurance obligations, and the subordination of competing interests. It helps prevent disputes and provides clarity about the parties' respective rights and obligations regarding the collateral.

What sections should be included in a Collateral Access Agreement?

1. Parties: Identification of all parties including lender, property owner/landlord, and tenant/borrower

2. Background: Context of the agreement including reference to main loan agreement and lease

3. Definitions: Key terms used throughout the agreement including defined terms from UCC Article 9 and property law concepts

4. Grant of Access: Terms of access rights granted to the lender, including scope and purpose of access

5. Notice Requirements: Procedures for providing notice before accessing the premises, including timing and format

6. Subordination of Liens: Treatment of competing liens and priorities, including landlord's liens and other security interests

7. Term and Termination: Duration of the agreement and circumstances under which it may be terminated

8. Governing Law: Specification of applicable law and jurisdiction

What sections are optional to include in a Collateral Access Agreement?

1. Insurance Requirements: Specific insurance obligations for accessing party, including liability coverage and certificates

2. Environmental Matters: Provisions regarding environmental liability and compliance when collateral includes potentially hazardous materials

3. Tenant's Rights: Specific protections for tenant's ongoing operations and business continuity

4. Indemnification: Provisions for indemnifying parties against losses arising from access rights

What schedules should be included in a Collateral Access Agreement?

1. Schedule A - Property Description: Legal description of the property subject to access rights

2. Schedule B - Access Procedures: Detailed procedures for exercising access rights, including security protocols

3. Schedule C - Insurance Requirements: Specific insurance coverage requirements and limits

4. Schedule D - Form of Notice: Template for required notices under the agreement

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

United States

Publisher

Genie AI

Document Type

Security Agreement

Cost

Free to use
Industries

Uniform Commercial Code (UCC): Article 9 governing secured transactions, including provisions for perfection and priority of security interests, and requirements for notice and enforcement rights

Property Laws: State-specific real property laws, landlord-tenant laws, and provisions governing rights of entry and access to property

Bankruptcy Code: Federal bankruptcy provisions including automatic stay provisions, creditors' rights in bankruptcy, and treatment of security interests during bankruptcy proceedings

State-Specific Lien Laws: Laws governing various types of liens including mechanics' liens, warehouse liens, and landlord's liens that may affect collateral access rights

Federal and State Banking Regulations: Regulatory requirements applicable to financial institutions involved in collateral access arrangements, including compliance obligations

Privacy Laws: Legal requirements governing the handling of sensitive information and data protection obligations in the context of collateral access

Insurance Requirements: State insurance regulations and liability coverage requirements relevant to collateral access arrangements

State Contract Laws: General contract law principles including enforceability requirements, consideration requirements, and statute of frauds provisions

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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