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Credit Support Agreement Template for Australia

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Key Requirements PROMPT example:

Credit Support Agreement

"I need a Credit Support Agreement under Australian law for a derivatives trading arrangement between our bank and a corporate client, with specific provisions for daily margining and PPSA registration, to be effective from March 2025."

Document background
The Credit Support Agreement is essential in Australian financial transactions where one party requires security for obligations owed by another party. It is commonly used in lending arrangements, derivatives transactions, and other financial dealings where credit risk needs to be managed. The document must comply with Australian legislation, particularly the Personal Property Securities Act 2009 (Cth), and includes provisions for creating and perfecting security interests, enforcement mechanisms, and regulatory compliance. It is typically used alongside other transaction documents and may need to accommodate specific requirements of Australian regulators such as ASIC and APRA. The agreement should address both the immediate security arrangement and potential future modifications, including provisions for changing market conditions and regulatory requirements.
Suggested Sections

1. Parties: Identifies and defines all parties to the agreement, including the security provider, security recipient, and any guarantors

2. Background: Sets out the context of the agreement, including reference to any primary obligations being secured

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

4. Security Interest: Details the nature and scope of the security interest being granted

5. Secured Obligations: Specifies the obligations being secured under the agreement

6. Representations and Warranties: Sets out the representations and warranties given by the security provider

7. Undertakings: Details the ongoing obligations and commitments of the security provider

8. Events of Default: Defines circumstances constituting default and triggering enforcement rights

9. Enforcement: Specifies the security recipient's rights and powers upon default

10. Power of Attorney: Grants power of attorney to the security recipient for enforcement purposes

11. Payments and Calculations: Sets out payment obligations and calculation methodologies

12. General Provisions: Contains standard boilerplate provisions including notices, amendments, and governing law

Optional Sections

1. Cross-Default: Include when the agreement needs to reference defaults under other related agreements

2. Third Party Rights: Include when third parties have specific rights under the agreement

3. Currency Provisions: Include for cross-border transactions involving multiple currencies

4. Tax Provisions: Include when specific tax implications need to be addressed

5. PPSA Provisions: Include detailed Personal Property Securities Act provisions when applicable

6. Regulatory Compliance: Include specific regulatory compliance obligations when dealing with regulated entities

7. Priority Arrangements: Include when there are multiple security interests requiring priority arrangements

8. Custodian Provisions: Include when a third-party custodian is involved in holding secured assets

Suggested Schedules

1. Secured Property Schedule: Details all assets subject to the security interest

2. Secured Obligations Schedule: Lists all obligations being secured under the agreement

3. Calculation Schedule: Details methods for calculating secured amounts, interest, and other relevant calculations

4. Form of Notice: Standard forms for various notices required under the agreement

5. Security Provider Details: Detailed information about the security provider and their assets

6. Existing Security Interests: List of any existing security interests affecting the secured property

7. Registration Requirements: Details of security interest registrations required

8. Authorized Persons: List of persons authorized to act on behalf of the parties

Authors

Alex Denne

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

Relevant legal definitions





























































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Relevant Industries

Banking and Financial Services

Corporate Lending

Investment Management

Commercial Real Estate

Infrastructure

Mining and Resources

Manufacturing

Retail

Agriculture

Technology

Healthcare

Energy and Utilities

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Finance

Security Operations

Credit Risk

Transaction Management

Corporate Secretariat

Relevant Roles

Chief Financial Officer

Treasury Manager

Legal Counsel

Finance Director

Credit Risk Manager

Compliance Officer

Security Trustee Officer

Corporate Finance Manager

Risk Management Officer

Transaction Manager

Financial Controller

Legal Operations Manager

Corporate Secretary

Banking Relationship Manager

Securities Operations 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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