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The Global Collateral Account Control Agreement is a crucial document used in secured financing arrangements where parties need to establish control over collateral held in accounts, particularly in cross-border transactions. This agreement is essential when parties require a robust legal framework under Hong Kong law to perfect security interests over financial assets held in accounts. It becomes particularly relevant in international financing transactions, securities lending, derivatives trading, and other financial arrangements where collateral needs to be managed across multiple jurisdictions. The agreement addresses key aspects such as control rights, operational procedures, and enforcement mechanisms, while ensuring compliance with Hong Kong's legal requirements and international best practices for collateral management. It is frequently used in conjunction with security agreements, credit facilities, and master trading agreements to create a comprehensive security package.

1. Parties: Identifies the account holder, secured party, and account bank/custodian

2. Background: Sets out the context of the agreement, including reference to related security agreements

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Account Control and Security: Establishes the account bank's agreement to comply with secured party's instructions and maintains the security interest

5. Control and Operation of the Account: Details the mechanics of how control works, including instruction rights and operational procedures

6. Rights and Duties of the Account Bank: Specifies the account bank's obligations, standard of care, and protections

7. Representations and Warranties: Contains representations from all parties regarding authority, capacity, and account ownership

8. Security Interest and Priority: Confirms the security interest and its priority

9. Instructions and Notifications: Details the process for giving instructions and notifications regarding the account

10. Fees and Expenses: Sets out the fee structure and responsibility for expenses

11. Indemnification: Contains indemnification provisions protecting the account bank

12. Term and Termination: Specifies the duration and termination procedures

13. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and jurisdiction for disputes

14. General Provisions: Contains standard boilerplate provisions including amendments, assignments, notices