¶¶Òõ¶ÌÊÓƵ

The Collateral Account Agreement is a critical security document used in Malaysian financing transactions where cash collateral or account-based security is required. It is commonly used in project financing, corporate lending, and structured finance transactions where lenders require security over cash deposits or specific bank accounts. The agreement establishes the security interest over the relevant accounts, ensuring compliance with the Financial Services Act 2013 and other applicable Malaysian regulations. It typically accompanies facility agreements or other primary financing documents, providing detailed mechanisms for account control, permitted withdrawals, and enforcement rights. The document is essential in scenarios where ongoing cash management and control are crucial to the security package, such as in project accounts, debt service reserve accounts, or general cash collateral arrangements.

1. Parties: Identifies the account holder/security provider, the secured party/bank, and any other relevant parties such as account bank if different from secured party

2. Background: Sets out the context of the agreement, referring to any underlying facility or credit agreement and the purpose of the collateral arrangement

3. Definitions and Interpretation: Defines key terms including 'Collateral Account', 'Security Interest', 'Secured Obligations', and other relevant terms

4. Creation and Nature of Security: Establishes the security interest over the account and its proceeds, including the nature and scope of the security

5. Perfection and Further Assurance: Requirements for perfecting the security interest and obligations to execute further documents

6. Representations and Warranties: Standard representations regarding authority, capacity, and ownership of the account

7. Operation of the Account: Rules and procedures for operating the account, including withdrawal rights and restrictions

8. Rights and Obligations of the Parties: Detailed obligations of each party regarding the maintenance and operation of the account

9. Events of Default: Circumstances constituting default and their consequences

10. Enforcement: Rights and remedies of the secured party upon default

11. Payments and Transfers: Rules regarding payments into and out of the account

12. Costs and Expenses: Allocation of costs related to the agreement and account maintenance

13. Notices: Communication procedures between parties

14. Assignment and Transfer: Rules regarding transfer of rights under the agreement

15. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and jurisdiction for disputes