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Irrevocable Pledge Agreement for Malaysia

Irrevocable Pledge Agreement Template for Malaysia

This document is a legally binding agreement under Malaysian law that creates an irrevocable security interest over specified assets in favor of a pledgee. It is governed by Malaysian law, particularly the Contracts Act 1950 and related legislation, and establishes a secured creditor's rights over pledged assets. The agreement includes detailed provisions for the creation, perfection, and enforcement of the security interest, along with representations, warranties, and covenants specific to Malaysian security arrangements. It incorporates requirements for registration under relevant Malaysian statutes and addresses local regulatory compliance requirements.

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What is a Irrevocable Pledge Agreement?

An Irrevocable Pledge Agreement is a crucial security document used in Malaysian financing transactions where a party (pledgor) grants a security interest over specific assets to secure obligations owed to another party (pledgee). This agreement is particularly important in corporate financing, loan security arrangements, and other commercial transactions requiring collateral. The document's irrevocable nature means the pledgor cannot unilaterally revoke the security interest once granted, providing strong protection for the pledgee. Under Malaysian law, the agreement must comply with various regulatory requirements, including those under the Contracts Act 1950, Companies Act 2016, and where applicable, the Financial Services Act 2013. The agreement typically details the pledged assets, secured obligations, enforcement mechanisms, and parties' rights and obligations, while ensuring compliance with local registration and perfection requirements.

What sections should be included in a Irrevocable Pledge Agreement?

1. Parties: Identification of the Pledgor and Pledgee with full legal names and addresses

2. Background: Context of the pledge arrangement and relationship between parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Pledge and Security Interest: Core section establishing the pledge and describing the pledged assets

5. Secured Obligations: Definition of the obligations secured by the pledge

6. Irrevocability: Provisions establishing the irrevocable nature of the pledge

7. Representations and Warranties: Standard representations regarding ownership, authority, and absence of encumbrances

8. Covenants: Ongoing obligations of the Pledgor regarding the pledged assets

9. Rights and Obligations: Respective rights and obligations of both parties

10. Events of Default: Circumstances constituting default under the agreement

11. Enforcement: Remedies and enforcement mechanisms available to the Pledgee

12. Notices: Communication requirements and contact details

13. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction

14. Miscellaneous: Standard boilerplate provisions including severability, amendments, and entire agreement

What sections are optional to include in a Irrevocable Pledge Agreement?

1. Security Agent Provisions: Required when a security agent is appointed to hold the pledge on behalf of multiple beneficiaries

2. Foreign Law Considerations: Needed when pledged assets are located in multiple jurisdictions

3. Regulatory Compliance: Required when pledge involves regulated assets or entities

4. Tax Provisions: Include when there are specific tax implications requiring addressing

5. Insurance: Required when pledged assets need to be insured

6. Voting Rights: Needed when pledged assets include shares or other voting securities

7. Income and Distributions: Required when pledged assets generate income or distributions

8. Registration Requirements: Include when pledge requires registration with specific authorities

What schedules should be included in a Irrevocable Pledge Agreement?

1. Schedule 1 - Description of Pledged Assets: Detailed description and/or list of all assets subject to the pledge

2. Schedule 2 - Secured Obligations: Detailed description of the obligations secured by the pledge

3. Schedule 3 - Form of Notice: Standard form of notices required under the agreement

4. Schedule 4 - Registration Requirements: List of required registrations and filings

5. Schedule 5 - Existing Security Interests: List of any existing security interests or encumbrances on the pledged assets

6. Appendix A - Required Documents: List of documents to be delivered in connection with the pledge

7. Appendix B - Form of Transfer Documents: Standard forms for transferring or registering the pledge

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Security Agreement

Cost

Free to use
Relevant legal definitions




























Clauses


























Relevant Industries

Banking and Financial Services

Corporate Finance

Real Estate

Manufacturing

Trading and Commerce

Investment Management

Infrastructure

Energy

Technology

Telecommunications

Relevant Teams

Legal

Finance

Compliance

Risk Management

Treasury

Corporate Secretarial

Credit

Commercial

Investment

Securities

Relevant Roles

Legal Counsel

Corporate Finance Manager

Compliance Officer

Risk Manager

Treasury Manager

Chief Financial Officer

Company Secretary

Security Trustee

Commercial Director

Credit Manager

Investment Manager

Legal Director

Transaction Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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