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A Control Agreement lets a lender take security over a bank account in Singapore without needing physical control of it. It's a three-way contract between the account holder, their bank, and the lender that gives the lender certain rights over the account.

Under Singapore's Securities and Futures Act, these agreements help lenders protect their interests by controlling how money flows in and out of the secured account. The account holder can still use their account normally until a specified event occurs - typically a loan default. At that point, the bank must follow the lender's instructions about the account rather than the account holder's.

A Control Agreement becomes essential when you're lending against bank accounts as collateral in Singapore. It's particularly valuable for secured financing deals where the borrower needs to keep operating their account while giving you security over it - common in trade finance and working capital facilities.

Banks and financial institutions typically need this agreement when extending credit to businesses that maintain operational accounts. It protects the lender's interests by establishing clear rights over the account funds, while letting the borrower conduct normal business until a triggering event occurs. This arrangement works especially well for revolving credit facilities and trade financing structures.

• Fixed Control: Gives the lender immediate and complete control over the account, blocking the account holder from any withdrawals without lender approval - common in high-risk loans
• Springing Control: Allows normal account operation until a specific event triggers lender control - typically used for working capital facilities
• Hybrid Control: Combines elements of both, requiring joint approval for transactions above certain thresholds while allowing routine smaller transactions
• Multi-Party Control: Involves multiple lenders with varying levels of control rights, often used in syndicated facilities

• Lenders: Banks, financial institutions, or credit providers who require security over bank accounts as collateral for loans or facilities
• Account Holders: Companies or individuals who pledge their bank accounts as security while maintaining operational access
• Account Banks: Financial institutions holding the secured accounts, responsible for implementing control mechanisms and following instructions
• Legal Counsel: Draft and review agreements to ensure compliance with Singapore's Securities and Futures Act
• Compliance Officers: Monitor adherence to agreement terms and trigger conditions within their respective organizations

• Account Details: Gather complete bank account information, including account numbers, branch details, and authorized signatories
• Trigger Events: Define specific conditions that will activate lender control over the account
• Operating Rules: Establish clear guidelines for daily transactions, approval thresholds, and notification requirements
• Party Information: Collect full legal names, registration numbers, and authorized representative details for all parties
• Security Terms: Outline the scope of security interest and enforcement rights under Singapore law
• Documentation: Use our platform to generate a legally-sound Control Agreement that incorporates all these elements correctly

• Party Identification: Full legal names and registration details of lender, account holder, and account bank
• Account Details: Specific bank account numbers and types covered by the agreement
• Control Mechanism: Clear procedures for implementing control and operational restrictions
• Trigger Events: Precise conditions that activate lender's control rights
• Notice Requirements: Communication protocols between all parties
• Governing Law: Express choice of Singapore law and jurisdiction
• Security Interest: Clear description of the secured obligations and enforcement rights
• Execution Blocks: Proper signature sections for all three parties

A Control Agreement differs significantly from an Account Agreement in both scope and purpose. While both deal with bank accounts, they serve distinct functions in Singapore's financial landscape.

• Purpose and Control: Control Agreements specifically create security interests over bank accounts, giving lenders conditional control rights. Account Agreements simply establish the relationship between a bank and its customer.
• Parties Involved: Control Agreements require three parties (lender, account holder, and bank), while Account Agreements are bilateral between bank and customer only.
• Legal Effect: Control Agreements create enforceable security interests under Singapore's Securities and Futures Act. Account Agreements focus on operational terms and service conditions.
• Triggering Events: Control Agreements include specific events that transfer account control to the lender. Account Agreements maintain consistent terms throughout their duration.