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The Property Collateral Agreement is essential in secured lending transactions within Pakistan's legal system, where immovable property serves as security for financial obligations. This document type is commonly used by financial institutions, businesses, and individuals seeking to create legally enforceable security interests over property. The agreement must comply with several key pieces of Pakistani legislation, including the Transfer of Property Act 1882, Registration Act 1908, and Contract Act 1872. It contains crucial provisions regarding the property description, secured obligations, enforcement mechanisms, and parties' rights and obligations. The Property Collateral Agreement becomes particularly important in commercial lending, real estate financing, and corporate borrowing arrangements where property serves as security.

1. Parties: Identification of the parties: the security provider/mortgagor and the security taker/mortgagee

2. Background: Context of the agreement, including reference to any underlying loan or facility agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Grant of Security Interest: Core provision creating the security interest over the property

5. Secured Obligations: Description of the obligations being secured by the property collateral

6. Representations and Warranties: Security provider's confirmations regarding ownership, authority, and property status

7. Covenants: Ongoing obligations regarding property maintenance, insurance, and other requirements

8. Events of Default: Circumstances constituting default under the agreement

9. Enforcement: Rights and remedies of the security taker upon default

10. Power of Attorney: Appointment of security taker as attorney for enforcement purposes

11. Further Assurance: Obligation to execute additional documents and take necessary steps

12. Notices: Process for sending and receiving formal communications

13. Governing Law and Jurisdiction: Confirmation of Pakistani law and jurisdiction