Document background
The Pledged Collateral Account Control Agreement is a crucial security document in English and Welsh secured financing transactions. It is typically used when a borrower pledges a bank account as collateral for a loan or other financial obligation. The agreement ensures the secured party has effective control over the pledged account, which is essential for perfecting their security interest under English law. It details the operational mechanics of the arrangement, including how and when the secured party can exercise control, the account bank's obligations, and the procedures for releasing the security. The agreement is commonly used alongside other security documents in corporate finance, acquisition finance, and other secured lending transactions.
