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A Blocked Account Control Agreement is a crucial security document used in Malaysian financing transactions where a lender requires control over a borrower's bank account as collateral. This type of agreement is commonly used in project finance, corporate lending, and structured finance transactions where cash flow control is essential for the lender's security package. The agreement complies with Malaysian banking regulations, particularly the Financial Services Act 2013, and establishes the mechanism by which the account bank will follow instructions from the secured party regarding the blocked account. It details the rights and obligations of all parties, including operational procedures, control mechanisms, and the process for exercising exclusive control over the account. This document is particularly important in the Malaysian context where banking security arrangements must align with both local banking regulations and Islamic banking principles where applicable.

1. Parties: Identifies all parties to the agreement: typically the Account Holder, the Bank, and the Secured Party

2. Background: Sets out the context of the agreement, including reference to any related security agreements and the purpose of the blocked account arrangement

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

4. Account Control and Security: Establishes the security interest and control rights over the blocked account

5. Bank's Rights and Obligations: Details the bank's responsibilities regarding account maintenance and control instructions

6. Notice of Exclusive Control: Specifies the process and effect of the secured party exercising exclusive control over the account

7. Account Holder Agreements and Obligations: Sets out the account holder's commitments and restrictions regarding the account

8. Operating Procedures: Details the day-to-day operation of the account, including authorized instructions and authentication procedures

9. Fees and Expenses: Specifies fees payable to the bank and allocation of expenses

10. Representations and Warranties: Contains standard representations and warranties from all parties

11. Indemnification: Sets out the indemnification obligations between parties

12. Term and Termination: Specifies the duration of the agreement and termination procedures

13. Notices: Details how formal notices should be given between parties

14. General Provisions: Contains standard boilerplate provisions including governing law, jurisdiction, and amendments