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The Blocked Account Agreement is a crucial document in Australian banking and finance transactions where controlled bank accounts are required for security or operational purposes. This agreement is commonly used in project finance, secured lending arrangements, and other commercial transactions where funds need to be segregated and controlled. The document establishes the legal framework for operating a blocked account, defining the rights and obligations of the bank, account holder, and any security beneficiary. It incorporates key requirements under Australian banking and securities law, including the Banking Act 1959 (Cth) and Personal Property Securities Act 2009 (Cth). The agreement is particularly relevant when lenders require control over a borrower's cash flows, in escrow arrangements, or where project revenues need to be captured in a controlled account structure.

1. Parties: Identifies all parties to the agreement including the account holder, the bank, and any security beneficiary

2. Background: Sets out the context and purpose of the blocked account arrangement

3. Definitions and Interpretation: Defines key terms used in the agreement and establishes interpretation principles

4. Account Establishment: Details of the blocked account setup, account designation, and initial funding

5. Operation of Account: Rules governing the operation of the account, including restrictions on withdrawals and permitted transactions

6. Control Mechanisms: Specifies who has control over the account and how control is exercised

7. Bank's Rights and Obligations: Sets out the bank's role, responsibilities, and rights regarding the account

8. Security Interest: Establishes the security interest over the account and its proceeds

9. Representations and Warranties: Standard representations and warranties from all parties

10. Release Conditions: Conditions under which restrictions on the account may be lifted

11. Fees and Costs: Details of bank charges and responsibility for costs

12. Liability and Indemnity: Limitations on bank's liability and indemnities provided by parties

13. Termination: Circumstances and process for terminating the agreement

14. General Provisions: Standard boilerplate provisions including notices, amendments, governing law