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Collateral Substitution Agreement
"Need a Collateral Substitution Agreement under Singapore law to replace our existing government bonds with blue-chip corporate shares as collateral for our loan facility, with the substitution to take effect from March 1, 2025."
1. Parties: Identification of contracting parties and their details
2. Background/Recitals: Context of the agreement and reference to original collateral arrangements
3. Definitions: Key terms used throughout the agreement including references to relevant Singapore legislation (Securities and Futures Act, Companies Act, Property Law Act)
4. Substitution Rights: Terms and conditions for collateral substitution, including eligibility criteria and conditions precedent
5. Substitution Process: Procedural requirements for executing substitution, including notice requirements and timing
6. Representations and Warranties: Statements of fact and assurances by parties regarding their authority, ownership and right to substitute collateral
7. Governing Law and Jurisdiction: Specification of Singapore law as governing law and jurisdiction for dispute resolution
1. Valuation Mechanisms: Methods for valuing substitute collateral, to be included when dealing with complex or variable-value collateral
2. Credit Support Provisions: Additional credit support arrangements, required when supplementary credit support is needed
3. Cross-Default Provisions: Provisions linking to other agreements, included when multiple related agreements exist
1. Schedule of Original Collateral: Detailed description and specifications of existing collateral being substituted
2. Schedule of Substitute Collateral: Detailed description and specifications of new collateral being provided
3. Valuation Methodology: Detailed procedures and formulas for valuation of collateral
4. Form of Substitution Notice: Template notice format for formal substitution notifications
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