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Pledge And Security Agreement
"I need a Pledge and Security Agreement under Nigerian law for a manufacturing company pledging its equipment and inventory to secure a 5-year term loan facility closing in March 2025, with the security to be held by a security trustee for a syndicate of three banks."
1. Parties: Identification of the Pledgor and Pledgee/Secured Party, including full legal names and addresses
2. Background: Context of the security arrangement, reference to any underlying obligations or facilities
3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation
4. Grant of Security Interest: Creation and scope of the security interest, description of pledged assets
5. Perfection of Security Interest: Requirements and procedures for perfecting the security interest, including registration
6. Representations and Warranties: Pledgor's declarations regarding ownership, authority, and status of pledged assets
7. Covenants: Ongoing obligations of the Pledgor regarding maintenance and preservation of pledged assets
8. Events of Default: Circumstances constituting default under the agreement
9. Enforcement Rights: Secured Party's rights and remedies upon default
10. Power of Attorney: Appointment of Secured Party as attorney-in-fact for enforcement purposes
11. Notices: Communication requirements and contact details
12. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction for disputes
13. Miscellaneous: Standard boilerplate provisions including amendments, waivers, and severability
1. Security Trustee Provisions: Required when multiple secured parties are involved and a security trustee is appointed
2. Insurance Requirements: Needed when insurance of pledged assets is required
3. Currency Provisions: Required when dealing with foreign currency denominated obligations
4. Tax Provisions: Detailed tax provisions when significant tax implications exist
5. Intercreditor Provisions: Required when multiple creditors have security interests in the same assets
6. Electronic Execution: Provisions for electronic signing when parties agree to execute electronically
7. Further Assurance: Additional provisions for future actions to perfect or protect security interest
1. Schedule 1 - Description of Pledged Assets: Detailed description and identification of all assets subject to the pledge
2. Schedule 2 - Secured Obligations: Description of the obligations secured by the pledge
3. Schedule 3 - Form of Notice of Pledge: Template for notifying relevant parties of the pledge
4. Schedule 4 - Perfection Requirements: List of specific actions required to perfect the security interest
5. Schedule 5 - Required Consents and Approvals: List of third-party consents needed for the pledge
6. Appendix A - Registration Forms: Forms required for registering the security interest with relevant authorities
7. Appendix B - Powers of Attorney: Form of power of attorney if required for enforcement
Authors
Banking and Financial Services
Manufacturing
Real Estate
Oil and Gas
Telecommunications
Agriculture
Mining
Retail and Commerce
Technology
Infrastructure
Transportation
Healthcare
Legal
Finance
Risk Management
Compliance
Treasury
Credit
Corporate Finance
Commercial
Company Secretariat
Business Development
Chief Financial Officer
Legal Counsel
Finance Director
Risk Manager
Compliance Officer
Credit Manager
Treasury Manager
Security Trustee
Loan Officer
Corporate Finance Manager
Transaction Manager
General Counsel
Company Secretary
Commercial Director
Business Development Manager
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