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Third Party Pledge Agreement Template for Singapore

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Key Requirements PROMPT example:

Third Party Pledge Agreement

"Need a Third Party Pledge Agreement under Singapore law where my holding company will pledge shares in its subsidiaries to secure a USD 10M facility agreement dated 15 March 2025 between the bank and our operating company."

Document background
A Third Party Pledge Agreement is commonly used in Singapore when a party wishes to provide security for another's obligations without being directly liable for the underlying debt. This security arrangement is particularly relevant in corporate group structures, family businesses, or where business relationships necessitate third-party security support. The agreement must comply with Singapore's strict regulatory requirements, including registration with relevant authorities where applicable. It typically details the pledged assets, enforcement rights, representations and warranties, and includes necessary provisions for maintaining the security's validity under Singapore law.
Suggested Sections

1. Parties: Identifies the pledgor, pledgee, and principal debtor

2. Background: Explains the context of the underlying debt and reason for the pledge

3. Definitions: Defines key terms used throughout the agreement

4. Pledge: Details the assets being pledged and terms of the security interest

5. Representations and Warranties: Statements about ownership, authority, and condition of pledged assets

6. Covenants: Ongoing obligations of the pledgor regarding the pledged assets

7. Events of Default: Circumstances constituting default and consequences

8. Enforcement: Rights and remedies upon default

Optional Sections

1. Further Assurance: Additional actions parties may need to take when additional documentation or actions may be required

2. Power of Attorney: Appointment of pledgee as attorney when pledgee needs authority to act on pledgor's behalf

3. Insurance: Requirements for insuring pledged assets when physical property requiring insurance is involved

Suggested Schedules

1. Schedule of Pledged Assets: Detailed description of assets subject to the pledge

2. Form of Notice: Template for notifications to relevant third parties

3. Corporate Authorizations: Copies of relevant corporate approvals and resolutions

4. Underlying Facility Agreement Details: Summary of the principal debt agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




























Clauses

























Industries

Securities and Futures Act (Cap. 289): Primary legislation governing pledges of securities and financial instruments, including requirements for perfection of security interests and regulatory compliance in securities transactions

Property Law Act (Cap. 242): Fundamental legislation governing creation and enforcement of security interests in property, including rules for valid pledges and property rights

Companies Act (Cap. 50): Corporate law requirements including registration of charges, corporate authority requirements, and regulations when pledgor or pledgee is a company

Misrepresentation Act: Contract law legislation governing misrepresentation in contractual relationships and remedies available to affected parties

MAS Regulations: Monetary Authority of Singapore regulations applicable to pledges involving regulated financial instruments and compliance requirements

ACRA Registration Requirements: Registration procedures and timelines with the Accounting and Corporate Regulatory Authority for relevant pledges and charges

Capacity Requirements: Legal requirements regarding the capacity of parties to enter into a pledge agreement, including authority and competency considerations

Enforceability Framework: Legal framework governing the enforceability of pledge agreements, including default mechanisms and enforcement procedures

Priority Rules: Rules governing the priority of security interests in relation to other creditors and security holders

Notice Requirements: Legal requirements for serving notices and maintaining communication between parties in a pledge agreement

Perfection Requirements: Legal requirements for perfecting security interests under Singapore law to ensure enforceability against third parties

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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