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The Collateral Management Agreement serves as a critical document in secured lending transactions within the Nigerian jurisdiction. It is primarily used when a lender requires independent third-party oversight of collateral assets provided by a borrower as security for a loan. The agreement details the appointment of a collateral manager, their duties in monitoring and safeguarding the assets, reporting obligations, and the operational framework for collateral management. This document is essential for compliance with Nigerian financial regulations, particularly the Secured Transactions in Movable Assets Act 2017 and Central Bank of Nigeria requirements. It provides security for lenders while ensuring transparent and professional management of collateral assets, typically used in trade finance, commodity financing, and general secured lending transactions.

1. Parties: Identification of the collateral manager, the lender(s), and the borrower(s)

2. Background: Context of the agreement, including the underlying credit facility and purpose of the collateral management arrangement

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Appointment and Scope: Appointment of the collateral manager and detailed scope of services

5. Collateral Manager's Obligations: Detailed responsibilities including monitoring, reporting, and safeguarding of collateral

6. Rights and Powers of Collateral Manager: Authority and powers granted to the collateral manager

7. Client Obligations: Obligations of the borrower and lender, including access rights and information provision

8. Representations and Warranties: Standard representations and warranties from all parties

9. Operational Procedures: Detailed procedures for handling, monitoring, and reporting on collateral

10. Fees and Expenses: Fee structure, payment terms, and expense reimbursement

11. Liability and Indemnification: Limitations of liability and indemnification provisions

12. Term and Termination: Duration of agreement and termination provisions

13. Confidentiality: Provisions regarding confidential information handling

14. Force Majeure: Provisions for unforeseen circumstances and their handling

15. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction provisions

16. Notices: Communication procedures and contact details

17. General Provisions: Standard boilerplate clauses including assignment, amendments, and severability