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The Account Control Agreement Collateral is a crucial document in Australian secured financing arrangements, used when a borrower pledges its deposit accounts as collateral for a loan or other financial obligation. This agreement is particularly important under the Personal Property Securities Act 2009 (Cth) as it helps establish "control" over the financial asset, which can provide the secured party with a higher priority security interest. The document is typically used in conjunction with broader security arrangements and sets out the specific mechanisms by which the secured party can exercise control over the account, the bank's obligations to comply with the secured party's instructions, and the account holder's permitted activities. It includes detailed provisions for account operation, events of default, and the rights and obligations of all parties involved.

1. Parties: Identifies the three key parties: Account Holder, Secured Party, and Deposit Bank

2. Background: Sets out the context of the security arrangement and existence of the relevant account(s)

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Account Control and Security Interest: Establishes the security interest and control arrangements over the account

5. Bank's Rights and Obligations: Details the deposit bank's obligations regarding account operation and control instructions

6. Account Holder's Rights and Obligations: Specifies permitted activities and restrictions on the account holder

7. Secured Party's Rights: Outlines the secured party's rights to give instructions and control the account

8. Operation of Account: Details day-to-day operational procedures, including processing of instructions and timing

9. Events of Default: Defines events triggering enhanced control rights or enforcement

10. Representations and Warranties: Standard representations from all parties regarding capacity and authority

11. Bank's Liability and Indemnity: Limits bank's liability and provides indemnification for acting on instructions

12. Fees and Expenses: Sets out fee arrangements and responsibility for costs

13. Termination: Specifies conditions and process for terminating the agreement

14. General Provisions: Standard boilerplate provisions including notices, amendments, governing law