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Cash Collateral Agreement Template for Singapore

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Key Requirements PROMPT example:

Cash Collateral Agreement

"I need a Cash Collateral Agreement governed by Singapore law for a USD 10 million security arrangement between our investment fund and DBS Bank, to be effective from March 1, 2025, with quarterly interest payments and specific provisions for currency fluctuations."

Document background
A Cash Collateral Agreement is utilized when parties need to establish security over cash deposits to secure financial or performance obligations. This document is particularly relevant in Singapore's financial sector, where it must comply with MAS guidelines and local banking regulations. The agreement typically covers account arrangements, security interest creation, perfection requirements, and enforcement rights. It's commonly used in lending transactions, trading relationships, and other financial arrangements where cash security is required.
Suggested Sections

1. Parties: Identification of parties entering into the agreement, including registration details and addresses

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

3. Definitions and Interpretation: Key terms used throughout the agreement and interpretation rules

4. Grant of Security Interest: Core provisions establishing the security interest over the cash collateral

5. Perfection and Maintenance of Security: Requirements for maintaining valid security interest

6. Representations and Warranties: Standard declarations about capacity, authority, and ownership of collateral

7. Covenants: Ongoing obligations of the parties

8. Events of Default: Circumstances triggering enforcement rights

9. Enforcement: Rights and procedures upon default

Optional Sections

1. Interest and Payments: Terms for interest on cash collateral when interest is payable on the cash collateral

2. Tax Provisions: Handling of tax implications when cross-border elements exist or specific tax treatments apply

3. Currency Provisions: Handling multiple currencies when collateral may be in different currencies

4. Further Assurance: Obligations to execute additional documents when complex security arrangements require additional documentation

Suggested Schedules

1. Form of Notice: Standard form notices for perfection of security

2. Designated Accounts: Details of accounts where cash collateral is held

3. Authorized Signatories: List of persons authorized to give instructions

4. Calculation of Interest: Methodology for calculating interest (if applicable)

5. Form of Compliance Certificate: Standard form for periodic compliance confirmation

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

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Industries

Securities and Futures Act (SFA): Primary legislation governing securities-based collateral arrangements and regulatory requirements for dealing with securities in Singapore

Personal Property Securities Act: Legislation dealing with security interests in personal property, including rules on perfection and priority of security interests

Banking Act: Key legislation covering regulatory requirements for banking transactions and financial institutions in Singapore

Companies Act: Corporate legislation covering company authority, registration requirements for charges, and financial assistance provisions

Bankruptcy Act and Insolvency, Restructuring and Dissolution Act 2018: Legislation governing insolvency scenarios, preferential transfers, and clawback provisions that affect collateral arrangements

MAS Guidelines: Regulatory framework issued by Monetary Authority of Singapore covering requirements for financial institutions and collateral management

SGX Rules: Singapore Exchange regulations affecting listed companies, including relevant disclosure requirements for collateral arrangements

ISDA Master Agreement: International framework for derivatives trading, providing standard market practices for collateral arrangements

Law of Security: Legal principles governing creation and perfection of security interests and priority rules in Singapore

Contract Law: Fundamental legal principles governing formation and enforcement of contracts, including remedies for breach under Singapore law

Property Law: Legal framework governing transfer and rights over property, including legal and equitable interests under Singapore law

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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