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Third Party Security Agreement Template for Netherlands

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Key Requirements PROMPT example:

Third Party Security Agreement

"I need a Third Party Security Agreement under Dutch law where our parent company provides security over its real estate assets to secure a €50 million loan facility that will be provided to our operating subsidiary by March 2025."

Document background
The Third Party Security Agreement is a crucial document in secured financing transactions under Dutch law, commonly used when a party wishes to provide security for another entity's obligations, often within group company structures or in complex financing arrangements. This agreement is essential in situations where the principal debtor's own security is insufficient or where group structure arrangements require third-party collateral support. The document must comply with Dutch security interest creation requirements, including specificity of secured obligations and security assets, and may require notarization for certain types of security. It includes provisions for the creation, perfection, maintenance, and enforcement of security interests, along with the rights and obligations of all parties involved. The agreement is particularly relevant in corporate finance, project finance, and real estate financing transactions where third-party security is a crucial element of the security package.
Suggested Sections

1. Parties: Identification of the Security Provider (third party), the Beneficiary (secured party), and the Principal Debtor

2. Background: Context of the security arrangement, relationship between parties, and reference to the principal debt agreement

3. Definitions: Definitions of key terms used throughout the agreement, including Secured Obligations, Security Assets, and Enforcement Event

4. Creation of Security: Legal provisions establishing the security interest over the relevant assets

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

6. Representations and Warranties: Statements by the Security Provider regarding their authority, ownership of assets, and absence of encumbrances

7. Undertakings: Ongoing obligations of the Security Provider regarding the secured assets

8. Enforcement: Circumstances and procedures for enforcing the security interest

9. Power of Attorney: Authorization for the Beneficiary to act on behalf of the Security Provider in specified circumstances

10. Further Assurance: Obligation to execute additional documents or take actions to perfect the security

11. Costs and Expenses: Allocation of costs related to the agreement and enforcement

12. Notices: Communication procedures between parties

13. Assignment and Transfer: Rules regarding transfer of rights under the agreement

14. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction for disputes

Optional Sections

1. Security Asset Maintenance: Specific provisions for maintaining particular types of assets (use when security includes physical assets requiring maintenance)

2. Insurance: Requirements for insurance of secured assets (include when security includes physical assets requiring insurance)

3. Bank Accounts: Specific provisions for charged bank accounts (include when security includes bank accounts)

4. Intellectual Property: Special provisions for IP rights as security (include when security includes IP assets)

5. Release and Discharge: Conditions and process for releasing security (include for complex arrangements with multiple release triggers)

6. Parallel Debt: Creation of parallel debt structure (include when there are multiple beneficiaries or in syndicated arrangements)

7. Priority Arrangements: Provisions regarding ranking of security (include when there are multiple security interests)

8. Tax Provisions: Specific tax-related provisions (include when security arrangement has significant tax implications)

Suggested Schedules

1. Schedule 1 - Security Assets: Detailed description and/or list of assets subject to the security interest

2. Schedule 2 - Secured Obligations: Detailed description of the secured obligations, including reference to underlying agreements

3. Schedule 3 - Form of Notice: Standard forms for notices to third parties (e.g., bank account charge notices)

4. Schedule 4 - Required Filings and Registrations: List of required registrations and filings for perfection of security

5. Schedule 5 - Existing Security Interests: List of permitted existing security interests over the assets

6. Appendix A - Powers of Attorney: Forms of powers of attorney required for implementation

7. Appendix B - Security Asset Documents: Copies or details of title documents relating to security assets

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













































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Relevant Industries

Banking and Financial Services

Real Estate

Manufacturing

Technology

Infrastructure

Energy

Healthcare

Retail

Professional Services

Transportation and Logistics

Agriculture

Construction

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Secretariat

Credit Risk

Transaction Management

Security Administration

Corporate Finance

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Risk Manager

Corporate Lawyer

Security Trustee

Compliance Officer

Treasury Manager

Credit Risk Officer

Transaction Manager

Company Secretary

General Counsel

Senior Finance Manager

Corporate Finance 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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