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Security Account Control Agreement Template for South Africa

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Key Requirements PROMPT example:

Security Account Control Agreement

"I need a Security Account Control Agreement under South African law for a renewable energy project, where multiple foreign currency accounts need to be controlled by a syndicate of international lenders, with the agreement taking effect from March 1, 2025."

Document background
The Security Account Control Agreement is a critical document in secured financing transactions under South African law, used when a lender or security holder requires control over specific bank accounts as collateral. This agreement is typically executed alongside primary financing documents and security agreements, establishing the mechanism through which the secured party can exercise control over the account holder's bank accounts. It becomes particularly important in project finance, corporate lending, and structured finance transactions where cash flow control is essential for security. The agreement must comply with South African banking regulations and financial sector laws, including the Financial Sector Regulation Act and the Financial Intelligence Centre Act, while providing practical mechanisms for account control and security enforcement.
Suggested Sections

1. Parties: Identifies the key parties: Account Holder, Secured Party, and Account Bank

2. Background: Sets out the context of the security arrangement and references the primary security agreement

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles specific to South African law

4. Account Control and Security: Establishes the control mechanism and security interest over the accounts

5. Bank's Rights and Responsibilities: Details the Account Bank's obligations, including following instructions and maintaining the account

6. Control and Instructions: Specifies who can give instructions and when, including the transition after Notice of Exclusive Control

7. Secured Party's Rights: Outlines the rights of the Secured Party, including when and how they can exercise control

8. Account Holder's Rights and Obligations: Details the Account Holder's permitted activities and restrictions regarding the account

9. Representations and Warranties: Contains standard representations from all parties regarding authority, capacity, and account status

10. Fees and Expenses: Addresses the Bank's fees and expense reimbursement rights

11. Indemnification: Sets out indemnification obligations of the parties, particularly to the Account Bank

12. Term and Termination: Specifies the duration and termination circumstances of the agreement

13. Notices: Details how formal notices must be given between parties

14. General Provisions: Contains standard boilerplate provisions adapted to South African law

Optional Sections

1. Multiple Secured Parties: Required when there are multiple secured parties to establish priority and control rights

2. Foreign Currency Accounts: Needed when controlled accounts include foreign currency deposits

3. Electronic Banking Provisions: Required when electronic banking services are used for the controlled accounts

4. Special Instructions: Used when specific standing instructions or operational requirements exist

5. Intermediary Bank Provisions: Required when an intermediary bank is involved in the account structure

6. Tax Provisions: Needed when specific tax considerations apply to the account arrangement

7. Force Majeure: Optional expanded force majeure provisions for specific circumstances

Suggested Schedules

1. Schedule 1 - Account Details: Lists all accounts subject to the agreement, including account numbers and types

2. Schedule 2 - Authorized Signatories: Lists authorized persons who can give instructions for each party

3. Schedule 3 - Form of Notice of Exclusive Control: Template for the Secured Party to exercise exclusive control

4. Schedule 4 - Form of Termination Notice: Template for terminating the agreement

5. Schedule 5 - Bank's Fee Schedule: Details of the Bank's fees for maintaining the control agreement

6. Schedule 6 - Operating Procedures: Detailed procedures for account operation and instruction processing

7. Appendix A - Specimen Signatures: Contains specimen signatures of all authorized signatories

8. Appendix B - Communication Methods: Details accepted methods of communication and authentication procedures

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















































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Relevant Industries

Banking

Financial Services

Corporate Lending

Investment Banking

Asset Management

Private Equity

Infrastructure Finance

Project Finance

Commercial Real Estate

Mining and Resources

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Banking Operations

Credit

Security and Collateral Management

Transaction Management

Project Finance

Corporate Finance

Relevant Roles

Legal Counsel

Finance Manager

Treasury Manager

Security Trustee

Relationship Manager

Credit Manager

Compliance Officer

Risk Manager

Transaction Manager

Project Finance Manager

Corporate Finance Manager

Banking Operations Manager

Security Agent

Account Manager

Financial Controller

Industries








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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