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Security Transfer Agreement
"I need a Security Transfer Agreement governed by German law for transferring listed shares as collateral to secure a €50 million loan facility, with the security to be held by a security agent on behalf of a syndicate of three banks."
1. Parties: Identification of the transferor (security provider) and transferee (security taker), including full legal names and addresses
2. Background: Context of the security arrangement, reference to underlying obligations, and purpose of the security transfer
3. Definitions: Definitions of key terms used throughout the agreement, including 'Securities', 'Secured Obligations', and 'Security Period'
4. Transfer of Securities: Core provisions regarding the transfer of securities, including the transfer mechanism under German law
5. Secured Obligations: Detailed description of the obligations being secured by the security transfer
6. Representations and Warranties: Standard representations regarding ownership, authority, and absence of encumbrances
7. Rights and Obligations of the Parties: Ongoing obligations regarding maintenance of securities, voting rights, and dividends
8. Enforcement: Provisions regarding enforcement rights upon default, including sale and appropriation rights
9. Release and Retransfer: Conditions and process for release of security and retransfer of securities
10. Notices: Communication requirements and contact details
11. Governing Law and Jurisdiction: Confirmation of German law governance and jurisdiction provisions
1. Substitute Securities: Used when the agreement allows for replacement of securities with equivalent alternatives
2. Income and Voting Rights: Detailed provisions about handling of dividends and voting rights, necessary when securities generate income or carry voting rights
3. Security Agent: Required when security is held through an agent for multiple beneficiaries
4. Costs and Expenses: Detailed provisions about transaction costs and ongoing expenses, particularly relevant for complex security arrangements
5. Tax Provisions: Specific tax-related provisions, necessary when tax implications are significant
6. Further Assurance: Additional cooperation obligations, particularly relevant for complex security arrangements
1. Schedule 1 - Securities: Detailed description of the securities being transferred, including identification numbers and quantities
2. Schedule 2 - Secured Obligations: Detailed description of the secured obligations, including relevant agreements and maximum secured amounts
3. Schedule 3 - Form of Transfer Notice: Template for notices required for transferring securities
4. Schedule 4 - Form of Release Notice: Template for release and retransfer documentation
5. Schedule 5 - Securities Accounts: Details of relevant securities accounts and custodians
6. Appendix 1 - Power of Attorney: Form of power of attorney for enforcement purposes
7. Appendix 2 - Notification Forms: Standard forms for various notifications required under the agreement
Authors
Banking
Financial Services
Investment Management
Corporate Finance
Asset Management
Private Equity
Insurance
Capital Markets
Corporate Banking
Investment Banking
Legal
Finance
Treasury
Risk Management
Compliance
Securities Operations
Corporate Finance
Transaction Management
Portfolio Management
Collateral Management
Legal Counsel
Finance Director
Treasury Manager
Risk Manager
Compliance Officer
Corporate Lawyer
Banking Lawyer
Securities Operations Manager
Chief Financial Officer
Transaction Manager
Security Trustee
Portfolio Manager
Collateral Manager
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