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The Security Account Control Agreement is a crucial document in Nigerian secured lending transactions, used when a lender requires security over deposit accounts maintained by a borrower at a deposit bank. This agreement is essential for perfecting security interests in deposit accounts under Nigerian law, particularly the Secured Transactions in Movable Assets Act 2017 and the Banks and Other Financial Institutions Act 2020. It establishes the mechanism for the secured party to exercise control over the account(s), defines the rights and obligations of all parties, and sets out the procedures for operation of the account(s) both before and after any enforcement event. The agreement is typically used in conjunction with broader security arrangements and is particularly important in project finance, corporate lending, and structured finance transactions in Nigeria.

1. Parties: Identifies the three main parties: Account Holder, Secured Party, and Deposit Bank

2. Background: Explains the context of the security arrangement and references the main credit facility or security agreement

3. Definitions: Defines key terms used throughout the agreement, including Account, Control, Instructions, Notice of Exclusive Control

4. Account Control Arrangements: Core section establishing the control mechanism and the bank's acknowledgment of the security interest

5. Operating Procedures: Details the day-to-day operation of the account, including authorized signatories and instruction protocols

6. Rights and Obligations of the Bank: Specifies the bank's responsibilities, limitations, and protections

7. Rights and Obligations of the Secured Party: Details the secured party's control rights and responsibilities

8. Rights and Obligations of the Account Holder: Outlines the account holder's permitted activities and restrictions

9. Notice of Exclusive Control: Procedures for implementing exclusive control by the secured party upon default

10. Fees and Expenses: Details of bank fees and expense reimbursement obligations

11. Representations and Warranties: Standard representations from all parties regarding authority and capacity

12. Termination: Conditions and process for terminating the agreement

13. Miscellaneous: Standard boilerplate provisions including notices, amendments, governing law, etc.