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The Account Control Agreement Collateral is a crucial document in secured financing transactions under UAE law, typically used when bank accounts are pledged as collateral for financing arrangements. It complies with UAE Federal Law No. 4 of 2020 (Movable Collateral Law) and UAE Central Bank regulations, establishing the mechanism by which a secured party obtains and maintains control over the pledged account(s). The agreement is essential for perfecting security interests over bank accounts in the UAE and is commonly used in project finance, corporate lending, and structured finance transactions. It details the rights and obligations of the account holder, secured party, and account bank, including procedures for account operation, notice requirements, and enforcement mechanisms. The agreement is particularly important in the UAE context as it addresses specific local law requirements for creating and maintaining valid security interests over bank accounts.

1. Parties: Identifies the Account Holder, Secured Party, and Account Bank as parties to the agreement

2. Background: Sets out the context of the security arrangement and references the primary security agreement

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles, including UAE law-specific terms

4. Account Control Arrangements: Establishes the control mechanism over the account and rights of the secured party

5. Bank's Rights and Obligations: Details the bank's role, responsibilities, and protections under the agreement

6. Security Interest and Perfection: Addresses the creation and perfection of security interest under UAE law

7. Operation of the Account: Specifies how the account will be operated and procedures for instructions

8. Notice of Exclusive Control: Procedures for implementing exclusive control by the secured party

9. Representations and Warranties: Standard representations from all parties, including UAE law-specific confirmations

10. Fees and Expenses: Provisions regarding bank fees and expense reimbursement

11. Liability and Indemnity: Limitations of liability and indemnification obligations

12. Termination: Circumstances and procedures for terminating the agreement

13. Governing Law and Jurisdiction: Confirms UAE law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate provisions adapted for UAE law requirements