tiktok³ÉÈË°æ

The Third Party Collateral Agreement is a crucial document in secured financing transactions under Pakistani law, used when an entity other than the primary debtor provides security for a loan or other financial obligation. This arrangement is common in corporate group structures, family businesses, and other scenarios where related parties support each other's financing needs. The agreement must comply with Pakistani security laws, including the Contract Act 1872, Transfer of Property Act 1882, and relevant banking regulations. It typically includes detailed provisions on the nature of the security interest, perfection requirements, enforcement mechanisms, and the rights and obligations of all parties involved. The document is particularly important in Pakistan's business environment, where third-party security arrangements are frequently used to enhance credit support and facilitate access to financing.

1. Parties: Identifies the primary parties: (1) the Creditor/Security Agent, (2) the Primary Debtor, and (3) the Third Party Collateral Provider

2. Background: Recitals explaining the primary facility arrangement, the relationship between the debtor and third party collateral provider, and the purpose of the agreement

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles, including references to definitions in the primary facility agreement

4. Creation of Security Interest: Details the security interest being created over the collateral, including the nature and scope of the security

5. Secured Obligations: Defines the obligations being secured, including reference to the primary facility agreement

6. Representations and Warranties: Specific representations by the collateral provider regarding ownership, authority, and status of the collateral

7. Covenants: Ongoing obligations of the collateral provider regarding maintenance, insurance, and preservation of the collateral

8. Perfection Requirements: Steps required to perfect the security interest under Pakistani law, including registration requirements

9. Enforcement: Rights and remedies of the creditor upon default, including power of sale and appointment of receivers

10. Power of Attorney: Appointment of the creditor as attorney for specific security-related actions

11. Indemnities: Indemnification obligations of the collateral provider

12. Payments and Release: Provisions regarding payments, application of proceeds, and conditions for release of security

13. Miscellaneous: Standard boilerplate provisions including notices, amendments, and governing law