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Bank Account Control Agreement Template for Australia

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Key Requirements PROMPT example:

Bank Account Control Agreement

"I need a Bank Account Control Agreement under Australian law for a renewable energy project in Queensland, where multiple project accounts will be controlled by a syndicate of lenders, with the agreement to take effect from March 2025."

Document background
The Bank Account Control Agreement (BACA) is a critical document in secured lending transactions under Australian law, used when a lender requires control over a borrower's bank accounts as part of its security package. This agreement is particularly relevant in project finance, corporate lending, and structured finance transactions where account control is essential for the lender's security. The BACA establishes the mechanisms for account control, defines the rights and obligations of all parties, and sets out operational procedures for account management. It operates within the Australian legal framework, particularly under the Personal Property Securities Act 2009, and is essential for perfecting security interests over bank accounts. The agreement typically includes detailed provisions on instruction rights, the bank's role and protections, and the procedures for exercising control following specified triggers.
Suggested Sections

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

2. Background: Sets out the context of the agreement, including the existence of the account and security arrangement

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

4. Account Control: Establishes the control arrangement and rights over the account

5. Bank's Rights and Obligations: Details the bank's roles, responsibilities, and limitations

6. Instructions and Operations: Procedures for giving and acting on instructions regarding the account

7. Security Interest and Priority: Confirms the security interest and establishes priority arrangements

8. Fees and Expenses: Sets out the fee structure and responsibility for expenses

9. Representations and Warranties: Standard representations and warranties from all parties

10. Liability and Indemnity: Addresses limitation of liability and indemnification obligations

11. Term and Termination: Duration of the agreement and termination provisions

12. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

Optional Sections

1. Multi-Currency Provisions: Required when the account can hold multiple currencies

2. Electronic Banking Arrangements: Needed when electronic banking services are part of the arrangement

3. Disputes and Competing Claims: Additional provisions for handling disputes when higher risk of competing claims exists

4. Foreign Law Recognition: Required when parties are in different jurisdictions or foreign law security interests are involved

5. Tax Provisions: Specific tax-related provisions when tax implications are significant

6. Additional Security Arrangements: Required when the account control agreement is part of a broader security package

7. Force Majeure: Detailed force majeure provisions when specifically requested by parties

Suggested Schedules

1. Account Details: Specific details of the controlled account(s) including account numbers and types

2. Authorized Persons: List of persons authorized to give instructions for each party

3. Notice Details: Contact information and notice requirements for all parties

4. Fee Schedule: Detailed breakdown of all applicable fees and charges

5. Operational Procedures: Detailed procedures for account operation, including forms and timing requirements

6. Form of Instructions: Standard forms for various types of instructions under the agreement

7. Security Procedures: Details of security and verification procedures for instructions

Authors

Alex Denne

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

Relevant legal definitions

















































Clauses



































Relevant Industries

Banking and Financial Services

Commercial Lending

Corporate Finance

Investment Management

Private Equity

Infrastructure

Real Estate

Mining and Resources

Agriculture

Manufacturing

Retail

Healthcare

Technology

Relevant Teams

Legal

Treasury

Finance

Compliance

Risk Management

Operations

Credit

Corporate Banking

Security Operations

Transaction Management

Account Management

Relevant Roles

Chief Financial Officer

Treasury Manager

Finance Director

Legal Counsel

Compliance Officer

Risk Manager

Account Manager

Security Trustee

Relationship Manager

Credit Manager

Transaction Manager

Corporate Banking Manager

Security Operations Manager

Financial Controller

Project Finance Manager

Industries









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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