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Master Security Agreement for Malaysia

Master Security Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the framework for creating and maintaining multiple security interests over various types of assets. The document sets out the terms and conditions for securing obligations under various financial arrangements, including the creation, perfection, and enforcement of security interests. It complies with Malaysian financial regulations, including the Financial Services Act 2013 and Companies Act 2016, and can accommodate both conventional and Islamic finance structures. The agreement provides flexibility for future security arrangements while maintaining a consistent security structure across multiple transactions.

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What is a Master Security Agreement?

The Master Security Agreement serves as the primary security document in Malaysian financial transactions, establishing a comprehensive framework for creating and maintaining security interests over various types of assets. It is particularly useful in complex financing arrangements where multiple assets are involved or where additional assets may be added as security over time. The document complies with Malaysian law requirements, including the Financial Services Act 2013, Companies Act 2016, and where applicable, the Islamic Financial Services Act 2013. It includes detailed provisions for the creation, perfection, and enforcement of security interests, representations and warranties, covenants, and events of default. This agreement is typically used in corporate lending, project finance, and structured finance transactions, providing a standardized approach to security arrangements while allowing flexibility for specific transaction requirements.

What sections should be included in a Master Security Agreement?

1. Parties: Identification of the security provider(s) and security trustee/creditor

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

3. Definitions and Interpretation: Comprehensive definitions of terms used throughout the agreement and interpretation rules

4. Creation of Security Interest: Core provisions establishing the security interest and its scope

5. Secured Obligations: Definition and scope of the obligations being secured

6. Representations and Warranties: Standard and security-specific representations and warranties by the security provider

7. Covenants: Positive and negative obligations of the security provider regarding the secured assets

8. Perfection Requirements: Actions required to perfect the security interests and maintain perfection

9. Events of Default: Circumstances constituting default and triggering enforcement rights

10. Enforcement: Rights and procedures for enforcing the security interest upon default

11. Power of Attorney: Appointment of the security trustee/creditor as attorney for security-related matters

12. Further Assurance: Obligations to execute additional documents and take necessary actions

13. Costs and Expenses: Allocation of costs related to the security arrangement

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

15. Notices: Communication procedures between parties

16. Governing Law and Jurisdiction: Malaysian law as governing law and jurisdiction provisions

What sections are optional to include in a Master Security Agreement?

1. Islamic Finance Provisions: Required when the security arrangement needs to be Shariah-compliant

2. Currency Provisions: Required when secured obligations involve multiple currencies

3. Trust Provisions: Required when security is held on trust for multiple creditors

4. Parallel Debt: Required in transactions involving foreign lenders from certain jurisdictions

5. Priority Arrangements: Required when there are multiple security interests or creditors

6. Tax Provisions: Required when specific tax implications need to be addressed

7. Securities Account Provisions: Required when security includes securities or investment accounts

8. Intellectual Property Provisions: Required when security includes intellectual property rights

What schedules should be included in a Master Security Agreement?

1. Schedule 1 - Security Assets: Detailed description of assets subject to security interest

2. Schedule 2 - Forms of Accession Documents: Template documents for additional security providers or assets

3. Schedule 3 - Perfection Requirements: Specific actions required for different types of assets

4. Schedule 4 - Notice and Acknowledgment Forms: Template notices to third parties regarding the security

5. Schedule 5 - Powers of Attorney: Form of power of attorney and specific powers granted

6. Schedule 6 - Filing and Registration Requirements: List of required filings and registrations for different asset types

7. Schedule 7 - Existing Security Interests: Details of any existing security interests over the assets

8. Appendix A - Addresses for Notice: Contact details for all parties for formal notices

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

Financial Services

Corporate Finance

Real Estate

Manufacturing

Trading

Construction

Technology

Energy

Infrastructure

Telecommunications

Agriculture

Healthcare

Transportation

Retail

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Secretariat

Credit

Operations

Islamic Finance

Security Administration

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Compliance Officer

Treasury Manager

Credit Risk Manager

Security Trustee Officer

Facility Agent

Transaction Manager

Corporate Secretary

Finance Manager

Legal Director

Banking Relationship Manager

Risk Officer

Islamic Finance Officer

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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