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Business Security Agreement Template for Singapore

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Key Requirements PROMPT example:

Business Security Agreement

"Need a Business Security Agreement to secure a S$5 million equipment loan from DBS Bank, with the security to be granted over our manufacturing equipment and inventory located in our Singapore facility, to be effective from March 2025."

Document background
A Business Security Agreement is essential when a business seeks to obtain financing by providing security over its assets. Under Singapore law, this document formalizes the creation of security interests over various business assets, including equipment, inventory, accounts receivable, and intellectual property. The agreement must comply with Singapore's secured transactions framework, particularly the Securities and Futures Act and Companies Act, and requires registration with ACRA for certain types of security interests. It's commonly used in commercial lending, asset-based financing, and general corporate financing arrangements.
Suggested Sections

1. Parties: Identification of the secured party and the debtor

2. Background: Context of the security arrangement and underlying obligations

3. Definitions: Key terms used throughout the agreement including references to relevant Singapore legislation

4. Grant of Security Interest: Description of the security interest being created in accordance with Singapore law

5. Description of Collateral: Detailed description of the assets subject to the security interest

6. Secured Obligations: Description of the obligations being secured under the agreement

7. Representations and Warranties: Statements of fact by the debtor regarding the collateral and authority

8. Covenants: Ongoing obligations of the debtor including compliance with Singapore law

9. Events of Default: Circumstances triggering enforcement rights

10. Enforcement Rights: Rights and remedies upon default in accordance with Singapore law

Optional Sections

1. Insurance Requirements: Specific insurance obligations for the collateral when required

2. Third Party Rights: Rights of third parties in relation to the collateral and compliance with Singapore third-party rights legislation

3. Cross-Default Provisions: Provisions linking defaults under other agreements when multiple agreements are interconnected

Suggested Schedules

1. Schedule of Collateral: Detailed listing and description of all secured assets

2. Form of Notice: Template notices for third parties regarding the security interest

3. Priority Arrangements: Details of ranking among different security interests when multiple security interests exist

4. Existing Encumbrances: List of pre-existing security interests or encumbrances on the collateral

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






























Industries

Securities and Futures Act (Cap. 289): Primary legislation governing securities arrangements and financial collateral. Defines types of securities and enforcement mechanisms.

Companies Act (Cap. 50): Regulates corporate requirements including registration of charges, corporate borrowing powers, and filing requirements with ACRA (Accounting and Corporate Regulatory Authority).

Personal Property Securities Act: Governs security interests in personal property, including registration and priority rules for securities.

Contracts Act (Cap. 53): Fundamental legislation covering contract formation, validity, contractual obligations and remedies.

Property Law Act (Cap. 242): Covers provisions relating to property rights and rules regarding mortgages and charges.

Bankruptcy Act (Cap. 20): Addresses the impact of insolvency on security interests and establishes priority of creditors' claims.

Registration of Deeds Act (Cap. 269): Outlines requirements for registration of security interests and establishes priority rules for registered interests.

MAS Regulations: Regulatory framework established by the Monetary Authority of Singapore affecting security agreements in the financial sector.

ACRA Requirements: Filing and registration requirements established by the Accounting and Corporate Regulatory Authority for business security agreements.

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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