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Master Netting Agreement Template for Nigeria

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Key Requirements PROMPT example:

Master Netting Agreement

"I need a Master Netting Agreement under Nigerian law for use between our commercial bank and multiple financial institutions, with specific provisions for foreign currency transactions and electronic trading platforms, to be implemented by March 2025."

Document background
The Master Netting Agreement is essential for financial institutions and corporations operating in Nigeria who engage in multiple financial transactions with the same counterparty. This agreement provides legal certainty for netting arrangements under Nigerian law, reducing credit risk and capital requirements by allowing parties to offset positive and negative exposures into a single net amount. It is particularly relevant in light of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Central Bank of Nigeria regulations, which recognize netting arrangements. The document includes specific provisions for early termination, default scenarios, and settlement procedures, while ensuring compliance with Nigerian financial regulations and banking laws. It's commonly used in derivatives trading, securities lending, and other financial transactions where multiple obligations exist between parties.
Suggested Sections

1. Parties: Identification of the contracting parties and their legal status

2. Background: Context of the agreement and relationship between the parties

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules of interpretation

4. Scope of Agreement: Types of transactions and obligations covered by the netting arrangement

5. Netting Provisions: Core provisions detailing the netting mechanisms, calculations, and processes

6. Representations and Warranties: Statements of fact and assurances from each party

7. Events of Default: Circumstances constituting default and their consequences

8. Early Termination: Provisions for early termination and calculation of termination amounts

9. Set-off Rights: Rights to set off obligations against amounts owed

10. Payment Obligations: Terms for settlement and payment of netted amounts

11. Notice Requirements: Procedures for giving notices under the agreement

12. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

13. Miscellaneous: Standard boilerplate provisions including amendments, assignments, and severability

Optional Sections

1. Multi-branch Provisions: Include when parties operate through multiple branches or offices

2. Third Party Rights: Include when rights need to be extended to affiliates or third parties

3. Special Entity Provisions: Include when one party is a regulated entity requiring specific provisions

4. Credit Support Arrangements: Include when parties agree to provide collateral or other credit support

5. Electronic Trading Provisions: Include when parties engage in electronic trading or platform-based transactions

6. Local Law Requirements: Include specific Nigerian regulatory compliance provisions when dealing with regulated entities

Suggested Schedules

1. Schedule 1 - Covered Transactions: List and description of transaction types covered by the agreement

2. Schedule 2 - Excluded Transactions: List of transactions specifically excluded from the netting arrangement

3. Schedule 3 - Office Details: Contact details and notice information for each party

4. Schedule 4 - Forms of Confirmation: Standard forms for confirming transactions under the agreement

5. Appendix A - Netting Calculation Methodology: Detailed methodology for performing netting calculations

6. Appendix B - Form of Legal Opinions: Standard form legal opinions required under Nigerian law

7. Appendix C - Regulatory Notifications: Forms and procedures for required regulatory notifications in Nigeria

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





















































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Relevant Industries

Banking

Financial Services

Insurance

Investment Management

Securities Trading

Commodities Trading

Corporate Treasury

Pension Fund Management

Asset Management

Capital Markets

Development Finance

Microfinance

Relevant Teams

Legal

Treasury

Risk Management

Trading

Compliance

Operations

Finance

Credit Risk

Regulatory Affairs

Investment Management

Portfolio Management

Documentation

Transaction Management

Financial Control

Relevant Roles

Chief Financial Officer

Treasury Manager

Risk Management Officer

Legal Counsel

Compliance Officer

Trading Manager

Financial Controller

Operations Director

Credit Risk Manager

Head of Trading

General Counsel

Chief Risk Officer

Treasury Operations Manager

Head of Legal

Regulatory Compliance Manager

Senior Trading Executive

Investment Manager

Portfolio Manager

Industries








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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