¶¶Òõ¶ÌÊÓƵ

A Cash Collateral Agreement is essential in financial transactions where cash is provided as security for obligations between parties. This document is typically used in Denmark for trading relationships, lending arrangements, or derivative transactions where one party needs to secure its obligations to another. The agreement must comply with Danish financial regulations, particularly the Danish Financial Business Act and the implementation of the EU Financial Collateral Directive (2002/47/EC). It includes provisions for posting and maintaining collateral, interest calculations, rights of use, and enforcement procedures. The document becomes particularly relevant in the context of financial institutions' risk management practices and regulatory requirements for secured transactions in Denmark. It provides legal certainty regarding the perfection and enforcement of security interests in cash collateral under Danish law.

1. Parties: Identification of the collateral provider and collateral taker, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, reference to any master agreement or other related agreements, and purpose of the collateral arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Posted Collateral', 'Collateral Value', 'Default Event', etc.

4. Provision of Collateral: Core obligations regarding the posting of cash collateral, including transfer mechanisms and timing

5. Maintenance of Collateral: Requirements for maintaining collateral levels, including top-up and return provisions

6. Interest on Cash Collateral: Terms for calculation and payment of interest on posted cash collateral

7. Use and Rehypothecation Rights: Rights of the collateral taker to use or reinvest the cash collateral

8. Events of Default: Definition of events triggering default and consequences

9. Rights and Remedies: Actions available to parties upon default or breach

10. Representations and Warranties: Standard declarations by both parties regarding capacity, authority, and compliance

11. Tax: Treatment of tax implications and responsibilities

12. Notices: Communication procedures and contact details

13. Governing Law and Jurisdiction: Confirmation of Danish law governance and jurisdiction for disputes