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Collateral Control Agreement
"I need a Collateral Control Agreement under German law for a commodity trading arrangement where our bank will be the secured party for metal ore stored in multiple warehouses, with quarterly reporting requirements and specific provisions for quality testing."
1. Parties: Identifies and defines the key parties: Collateral Provider, Secured Party, and Collateral Control Agent
2. Background: Sets out the context of the agreement, including the underlying secured obligation and purpose of the collateral arrangement
3. Definitions and Interpretation: Defines key terms and establishes interpretation principles for the agreement
4. Appointment and Authority: Establishes the appointment of the Collateral Control Agent and scope of authority
5. Collateral Control Arrangements: Details the basic mechanisms for controlling and monitoring the collateral
6. Instructions and Communications: Establishes procedures for giving and acting on instructions regarding the collateral
7. Operational Procedures: Sets out day-to-day procedures for handling, monitoring, and reporting on the collateral
8. Representations and Warranties: Contains standard representations and warranties from all parties
9. Rights and Obligations: Details the specific rights and obligations of each party
10. Fees and Expenses: Specifies the fees payable to the Collateral Control Agent and expense allocation
11. Liability and Indemnification: Addresses risk allocation, liability limitations, and indemnification obligations
12. Term and Termination: Sets out the duration of the agreement and termination provisions
13. Governing Law and Jurisdiction: Specifies German law as governing law and establishes jurisdiction for disputes
14. Miscellaneous: Contains standard boilerplate provisions including notices, amendments, and severability
1. Insurance: Required when specific insurance coverage for the collateral needs to be maintained
2. Electronic Systems: Needed when parties use electronic systems for collateral monitoring and reporting
3. Additional Services: Include when the Collateral Control Agent provides services beyond basic control functions
4. Security Interest: Required when the agreement itself creates security interests rather than just controlling them
5. Tax Provisions: Include when specific tax implications need to be addressed
6. Force Majeure: Optional section detailing events beyond party control and their consequences
7. Confidentiality: Detailed confidentiality provisions when standard provisions are insufficient
1. Schedule 1 - Collateral Description: Detailed description of the collateral covered by the agreement
2. Schedule 2 - Operating Procedures: Detailed procedures for daily operations and handling of collateral
3. Schedule 3 - Fee Schedule: Detailed breakdown of fees and payment terms
4. Schedule 4 - Authorized Persons: List of persons authorized to give instructions for each party
5. Schedule 5 - Communication Procedures: Detailed procedures for notifications and communications
6. Schedule 6 - Forms: Standard forms for instructions, reports, and other routine communications
7. Schedule 7 - Locations: List of approved locations for storing physical collateral
8. Appendix A - Reporting Requirements: Specific requirements for regular reporting on collateral status
9. Appendix B - Service Level Agreement: Detailed service levels and performance standards
Authors
Banking & Finance
International Trade
Commodities Trading
Manufacturing
Logistics & Warehousing
Agriculture
Mining & Metals
Energy & Resources
Chemical Industry
Retail & Distribution
Legal
Risk Management
Trade Finance
Credit
Operations
Treasury
Compliance
Finance
Commercial
Business Development
Trade Finance Manager
Collateral Manager
Risk Manager
Legal Counsel
Compliance Officer
Credit Risk Officer
Treasury Manager
Operations Manager
Relationship Manager
Security Trustee
Facility Agent
Contract Administrator
Business Development Manager
Finance Director
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