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The Blocked Account Agreement is commonly used in various financial and commercial transactions where funds need to be held securely with controlled access. This agreement type is particularly relevant in project finance, escrow arrangements, or security packages where funds must be ring-fenced for specific purposes. Under New Zealand law, it provides a robust framework for establishing and operating accounts where funds can only be withdrawn under predetermined conditions or with specific authorizations. The agreement addresses requirements under New Zealand's financial services legislation, including the Financial Markets Conduct Act 2013 and banking regulations, while providing clarity on the rights and obligations of the account bank, account holder, and any security agent or beneficiary. It typically includes detailed provisions for account operation, withdrawal mechanisms, bank's rights and duties, and termination procedures.

1. Parties: Identifies all parties to the agreement including the Account Bank, Account Holder, and any Security Agent or Beneficiary

2. Background: Sets out the context and purpose of the blocked account arrangement

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

4. Account Establishment: Details of the blocked account(s) to be established and maintained

5. Operation of the Account: Rules governing the operation of the account, including authorized signatories and permitted transactions

6. Restrictions on Withdrawals: Specific conditions and restrictions on withdrawals from the blocked account

7. Bank's Rights and Obligations: The rights, duties, and obligations of the Account Bank

8. Account Holder's Representations and Warranties: Standard representations and warranties from the Account Holder

9. Security Interest: Creation and perfection of security interest over the account if applicable

10. Fees and Expenses: Bank's fees and allocation of expenses

11. Term and Termination: Duration of the agreement and termination provisions

12. Notices: How formal notices between parties should be given

13. General Provisions: Standard boilerplate provisions including governing law, jurisdiction, amendments