Document background
A Bank Account Control Agreement is commonly used in secured financing transactions where a lender requires control over a borrower's bank accounts as collateral security. This document is essential in Hong Kong financing arrangements where the perfection of security interests over bank accounts is required. It establishes the mechanism by which a secured party can exercise control over specified accounts, defining when and how such control can be implemented, while ensuring compliance with Hong Kong banking regulations and security laws. The agreement is particularly important in project finance, acquisition finance, and general corporate lending transactions where account security is a key component of the security package. It includes detailed provisions for account operation, control mechanisms, and the rights and obligations of all parties involved.
