Document background
The Blocked Account Agreement is a crucial document used in various financial arrangements where controlled accounts are required for security or regulatory purposes. This agreement is commonly used in project finance, secured lending transactions, and regulatory compliance scenarios in Canada. It establishes a framework where funds in an account are subject to specific control mechanisms and can only be accessed or transferred under predetermined conditions. The agreement must comply with Canadian federal banking regulations, including the Bank Act and anti-money laundering legislation, as well as provincial security interest laws. It typically includes detailed provisions for account operation, permitted transactions, control rights, and security interests. This document is particularly important in situations requiring strict control over funds, such as project finance escrow arrangements, secured lending facilities, or regulatory compliance requirements.
