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A Control Agreement lets a creditor take control over a debtor's bank account or securities in Denmark. It's a three-way contract between a creditor, debtor, and the account-holding bank that establishes the creditor's security interest in the account and restricts the debtor's access to those funds.

Danish banks commonly use Control Agreements when lending against financial assets or as part of larger financing deals. The agreement follows rules set by the Danish Securities Trading Act and gives creditors important rights - they can block transactions, receive account information, and take over the account if the debtor defaults. This makes it a crucial tool for secured lending in the Danish financial sector.

Banks and lenders need Control Agreements when securing loans against financial accounts in Denmark. These agreements become essential during major financing deals, especially when the borrower's bank accounts or investment portfolios serve as collateral. The timing often aligns with loan closings or when restructuring existing credit facilities.

Danish financial institutions typically require Control Agreements before releasing funds in secured lending scenarios. They're particularly valuable when dealing with revolving credit facilities, syndicated loans, or when multiple creditors have interests in the same accounts. The agreement needs to be in place before the security interest becomes effective under Danish law, making it a crucial early step in secured transactions.

• Basic Account Control Agreement: Covers a single bank account, giving the creditor control rights while allowing the debtor limited operational access
• Securities Account Control Agreement: Specifically designed for investment portfolios and securities accounts under Danish financial regulations
• Multi-Party Control Agreement: Used when multiple creditors have interests in the same accounts, establishing priority and coordination rules
• Omnibus Control Agreement: Covers multiple accounts at the same institution, streamlining administration for complex lending arrangements
• Hybrid Control Agreement: Combines control over both cash and securities accounts, common in comprehensive financing deals

• Lenders/Creditors: Banks, financial institutions, or other lenders who require security over financial accounts as part of their lending arrangements
• Account Holders/Debtors: Companies or individuals who pledge their accounts as collateral, maintaining limited access for daily operations
• Account Banks: Financial institutions holding the controlled accounts, responsible for implementing access restrictions and following creditor instructions
• Legal Counsel: Danish lawyers who draft and negotiate Control Agreements, ensuring compliance with local securities and banking laws
• Compliance Officers: Internal staff who monitor adherence to agreement terms and coordinate with all parties

• Account Details: Gather complete bank account information, including account numbers, types, and holding institution details
• Party Information: Collect legal names, registration numbers, and authorized signatories for all involved parties
• Security Terms: Define the scope of control rights, permitted activities, and triggering events for account restrictions
• Bank Requirements: Confirm the specific documentation and notice requirements from the account-holding bank
• Compliance Check: Review Danish financial regulations and ensure alignment with existing loan agreements
• Platform Generation: Use our platform to generate a legally-sound Control Agreement that incorporates all necessary elements under Danish law

• Party Identification: Full legal names, registration numbers, and addresses of the creditor, debtor, and account bank
• Account Definition: Detailed description of controlled accounts, including account numbers and types
• Control Rights: Specific powers granted to the creditor, including blocking rights and instruction authority
• Operating Procedures: Clear protocols for account access, notifications, and transaction approvals
• Default Provisions: Triggers and consequences of default under Danish financial regulations
• Termination Terms: Conditions and process for ending the agreement
• Governing Law: Explicit reference to Danish law and jurisdiction
• Notice Requirements: Communication protocols between all parties

A Control Agreement differs significantly from a Custody Agreement, though both deal with financial assets in Denmark. While Control Agreements focus specifically on securing a creditor's interest in bank accounts or securities, Custody Agreements establish broader arrangements for safekeeping and managing assets.

• Purpose and Scope: Control Agreements primarily serve as security instruments for lenders, while Custody Agreements cover comprehensive asset management services
• Party Relationships: Control Agreements involve a three-way relationship between creditor, debtor, and bank, whereas Custody Agreements typically involve just the custodian and asset owner
• Access Rights: Control Agreements restrict the account holder's access and give specific rights to creditors, while Custody Agreements maintain the owner's full control while delegating management duties
• Legal Framework: Control Agreements fall under Danish secured lending laws, while Custody Agreements operate under investment services regulations