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A Blocked Account Agreement is essential in situations where parties need to establish a controlled banking arrangement with restricted access to funds. This document type is commonly used in the Philippines for project finance security, escrow arrangements, regulatory compliance, or as part of larger financial transactions. The agreement, governed by Philippine law and BSP regulations, provides a comprehensive framework for managing restricted funds, including detailed provisions on account operation, authorized signatories, permitted transactions, and release conditions. It's particularly relevant for securing obligations, ensuring regulatory compliance, or managing project funds where controlled disbursement is crucial. The document must comply with the General Banking Law of 2000, Anti-Money Laundering Act, and other relevant Philippine banking regulations.

1. Parties: Identifies the contracting parties: typically the Account Bank, the Account Holder, and potentially a Security Agent or Beneficiary

2. Background: Sets out the context and purpose of the blocked account arrangement, including reference to any underlying transaction or requirement necessitating the blocked account

3. Definitions: Defines key terms used throughout the agreement, including banking terms, security-related definitions, and specific Philippine law references

4. Account Establishment: Details of the blocked account, including account number, type, and currency

5. Account Operation: Rules governing the operation of the account, including signing rights and authorized persons

6. Blocking Mechanism: Specific provisions detailing how the account is blocked and the restrictions on withdrawals/transfers

7. Permitted Transactions: Specifies which transactions are allowed from the blocked account and under what circumstances

8. Bank's Rights and Obligations: Sets out the rights, duties, and obligations of the bank maintaining the blocked account

9. Account Holder's Undertakings: Commitments and obligations of the account holder regarding the blocked account

10. Fees and Expenses: Details of banking charges, maintenance fees, and responsibility for payments

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

12. Duration and Termination: Term of the agreement and circumstances under which it can be terminated

13. Governing Law and Jurisdiction: Confirms Philippine law as governing law and specifies jurisdiction for disputes

14. Notices: Communication procedures between parties

15. Miscellaneous: Standard boilerplate provisions including severability, amendments, and entire agreement