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Credit Support Agreement Template for Netherlands

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Key Requirements PROMPT example:

Credit Support Agreement

"I need a Credit Support Agreement under Dutch law for a financial institution providing derivatives trading services to a corporate client, with specific provisions for daily valuation and EUR-denominated cash collateral only, to be effective from March 1, 2025."

Document background
The Credit Support Agreement is essential in financial transactions where parties seek to mitigate counterparty risk through collateral arrangements. This document, governed by Dutch law, is commonly used in conjunction with master trading agreements, derivatives transactions, or lending arrangements. It establishes the framework for posting, maintaining, and returning collateral, including detailed provisions for valuation, eligible collateral types, and enforcement mechanisms. The agreement must comply with Dutch legal requirements, including the Financial Collateral Arrangements Act and Financial Supervision Act, while also considering EU regulations. It's particularly relevant when at least one party is based in the Netherlands or when parties specifically choose Dutch law for its robust financial regulatory framework and established jurisprudence in financial matters.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including their legal names, registration details, and addresses

2. Background: Context of the agreement, reference to any master agreement, and purpose of the credit support arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including financial terms, calculation methods, and reference to any standard definitions

4. Credit Support Obligations: Core obligations regarding posting of collateral, including delivery amount, return amount, and timing requirements

5. Valuation and Calculations: Methods for calculating exposure, collateral value, and margin requirements

6. Transfer Timing and Conditions: Specific requirements for timing and procedures of collateral transfers

7. Custody and Rights: Arrangements for holding collateral, voting rights, and income payments

8. Events of Default: Circumstances constituting default and consequences thereof

9. Representations and Warranties: Standard representations and warranties from both parties

10. Tax Provisions: Treatment of tax issues related to collateral and transfers

11. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction provisions

Optional Sections

1. Eligibility and Substitution: Detailed rules for eligible collateral types and substitution rights - include when parties want flexibility in collateral types

2. Dispute Resolution: Specific procedures for resolving disputes - include when parties want detailed dispute mechanisms beyond court jurisdiction

3. Custodian Provisions: Detailed provisions regarding third-party custodian - include when using external custodian

4. Cross-Border Provisions: Additional provisions for cross-border arrangements - include when parties are in different jurisdictions

5. Additional Termination Events: Specific termination scenarios - include when parties want additional termination flexibility

6. Bespoke Collateral Requirements: Special requirements for specific collateral types - include when using non-standard collateral

Suggested Schedules

1. Schedule 1 - Eligible Collateral: Detailed list of acceptable collateral types and associated haircuts

2. Schedule 2 - Valuation Percentages: Specific percentages applied to different types of collateral for valuation purposes

3. Schedule 3 - Transfer Timing Requirements: Detailed timeline for transfers including cut-off times and business day conventions

4. Schedule 4 - Notification Forms: Standard forms for margin calls, transfer notices, and other communications

5. Schedule 5 - Custody Arrangements: Details of custody arrangements if using third-party custodian

6. Appendix A - Contact Details: List of authorized persons and contact information for notices

7. Appendix B - Calculation Examples: Examples of exposure and collateral requirement calculations

Authors

Alex Denne

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

Relevant legal definitions















































Clauses






























Relevant Industries

Financial Services

Banking

Investment Management

Insurance

Asset Management

Pension Funds

Securities Trading

Corporate Treasury

Hedge Funds

Private Equity

Relevant Teams

Legal

Treasury

Risk Management

Compliance

Trading Operations

Credit Risk

Documentation

Finance

Investment

Collateral Management

Trading

Operations

Relevant Roles

Legal Counsel

Treasury Manager

Risk Manager

Compliance Officer

Financial Director

Collateral Manager

Trading Operations Manager

Credit Risk Officer

Documentation Specialist

Transaction Manager

Chief Financial Officer

Head of Trading

Senior Counsel

Investment 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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