Deposit Control Agreement Template for Australia

The Deposit Control Agreement is a crucial document in secured financing transactions under Australian law, particularly where deposit accounts form part of the collateral package. This agreement is typically used in conjunction with broader security arrangements and is essential for perfecting security interests over deposit accounts under the Personal Property Securities Act 2009 (Cth). The agreement establishes the mechanism for control over deposit accounts, which is particularly important in project finance, corporate lending, and structured finance transactions. It details the operational procedures for account management, sets out the rights and obligations of all parties, and specifies the circumstances under which the secured party can exercise control over the accounts. The document must comply with Australian banking regulations and security laws while addressing practical operational requirements for all parties involved.

1. Parties: Identifies the three main parties: the Depositor, the Secured Party, and the Bank

2. Background: Explains the context of the agreement, including the existing security arrangement between Depositor and Secured Party

3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets out interpretation principles

4. Account Control and Security Interest: Establishes the control arrangement and confirms the security interest over the deposit account

5. Bank's Rights and Obligations: Details the bank's obligations regarding account operation and following instructions

6. Secured Party's Rights and Instructions: Specifies the secured party's rights to give instructions and control the account

7. Depositor's Rights and Restrictions: Outlines the depositor's limited rights to access the account and restrictions on operations

8. Account Operations: Describes operational procedures, including processing of instructions and timing

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

10. Representations and Warranties: Contains standard representations and warranties from all parties

11. Bank's Liability and Indemnification: Limits bank's liability and provides for indemnification of the bank

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

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

14. General Provisions: Contains standard boilerplate provisions including governing law, jurisdiction, and amendments