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The Control Agreement Bank Account is a crucial security document used in South African financing arrangements where a lender requires security over bank accounts. This agreement is typically executed alongside primary financing documents and creates a security interest in favor of a secured party over specified bank accounts. It establishes the mechanisms for controlling the account, including the bank's obligations to follow instructions from the secured party upon receipt of a Notice of Exclusive Control, usually following a default event. The agreement must comply with South African banking and security laws, including the Banks Act 94 of 1990 and Financial Intelligence Centre Act. It is particularly important in project finance, corporate lending, and structured finance transactions where lenders require direct control over cash flows and account balances as part of their security package.

1. Parties: Identifies the three key parties: Secured Party, Account Holder (Grantor), and Bank (Account Bank)

2. Background: Explains the context of the security arrangement and references any underlying security agreement

3. Definitions: Defines key terms including Account, Control, Security Interest, Secured Obligations, and Notice of Exclusive Control

4. Account Control: Establishes the basic control arrangement and authority over the account

5. Bank's Rights and Obligations: Details the bank's responsibilities, including following instructions and maintaining the account

6. Security Interest: Confirms and describes the security interest being perfected through control

7. Instructions and Notices: Specifies how instructions are to be given and acted upon, including Notice of Exclusive Control

8. Priority of Security Interest: Establishes priority and subordination of competing interests in the account

9. Fees and Expenses: Details fees payable to the bank and allocation of expenses

10. Representations and Warranties: Contains basic representations from all parties regarding authority and account status

11. Bank's Responsibility and Indemnification: Limits bank's liability and provides for indemnification

12. Termination: Specifies how and when the agreement can be terminated

13. General Provisions: Standard boilerplate including governing law, jurisdiction, notices, and amendments