Master Security Agreement Template for Australia

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Key Requirements PROMPT example:

Master Security Agreement

"I need a Master Security Agreement under Australian law for a multinational manufacturing company granting security over its equipment, inventory, and receivables to a syndicate of banks, with particular focus on cross-border collateral provisions as we have assets in both Australia and New Zealand."

Document background
The Master Security Agreement serves as the primary security document in financing transactions under Australian law, establishing the framework for creating and managing security interests over various types of collateral. This document is typically used when parties wish to establish a comprehensive security arrangement that may secure multiple obligations or facilities, either present or future. It incorporates all necessary provisions required under the Personal Property Securities Act 2009 (PPSA) and other relevant Australian legislation, including provisions for registration, enforcement, and priority arrangements. The Master Security Agreement is designed to be adaptable to different types of collateral and can accommodate additional secured obligations over time, making it particularly useful for ongoing financial relationships and complex security arrangements. It includes specific provisions for PPSA compliance, enforcement rights, representations and warranties, and detailed schedules describing the secured property.
Suggested Sections

1. Parties: Identifies the secured party/parties and grantor(s) of the security interest

2. Background: Sets out the context of the security arrangement and the intention to create security interests

3. Definitions and Interpretation: Defines key terms used in the agreement, including PPSA-specific terminology

4. Grant of Security Interest: Core provision creating the security interest over the collateral

5. Secured Obligations: Defines the obligations being secured by the agreement

6. Representations and Warranties: Grantor's confirmations regarding their capacity, ownership of collateral, and other material matters

7. Undertakings: Ongoing obligations of the grantor regarding the collateral and security interest

8. PPSA Provisions: Specific provisions required under the PPSA including registration, notices, and contracting out provisions where permitted

9. Events of Default: Circumstances that constitute default under the agreement

10. Enforcement: Rights and powers of the secured party upon default

11. Power of Attorney: Appointment of secured party as attorney for specific purposes

12. Protection of Secured Party: Provisions limiting liability and protecting the secured party's interests

13. Payments and Recovery: Rules for application of payments and secured party's recovery rights

14. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

Optional Sections

1. Priority Arrangements: Required when there are multiple secured parties or existing security interests requiring priority arrangements

2. Special Asset Provisions: Needed when specific types of assets (e.g., serial numbered goods, investment instruments) form part of the collateral

3. Cross-Collateralization: Used when security interests secure obligations under multiple facilities or agreements

4. Guarantee Provisions: Required when the security agreement includes guarantees from third parties

5. Foreign Law Assets: Needed when collateral includes assets located outside Australia

6. Real Property Provisions: Required when security extends to real property interests

7. Intellectual Property Provisions: Needed when security includes intellectual property rights

8. Trust Provisions: Required when any party acts in capacity as trustee

Suggested Schedules

1. Schedule of Collateral: Detailed description of all assets subject to the security interest

2. Secured Parties Schedule: Details of all secured parties where there are multiple parties

3. Grantors Schedule: Details of all grantors where there are multiple parties

4. Guarantors Schedule: List and details of any guarantors

5. Serial Numbered Goods: Details of serial numbered goods as required for PPSA registration

6. Existing Security Interests: List of existing security interests and priority arrangements

7. Forms of Notice: Standard form notices for various purposes under the agreement

8. Registration Details: PPSA registration requirements and verification statements

9. Secured Obligations Schedule: Detailed description of all obligations secured by the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Corporate Lending

Asset Finance

Commercial Real Estate

Manufacturing

Retail

Technology

Infrastructure

Mining & Resources

Agriculture

Healthcare

Transport & Logistics

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Credit

Corporate Finance

Transaction Management

Security Administration

Portfolio Management

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Corporate Lawyer

Security Trustee

Loan Officer

Credit Manager

Risk Manager

Compliance Officer

Treasury Manager

Transaction Manager

Security Agent

Portfolio Manager

Banking Relationship Manager

Finance Manager

Industries
Personal Property Securities Act 2009 (Cth): Primary legislation governing security interests in personal property in Australia, including registration, priority rules, and enforcement of security interests
Corporations Act 2001 (Cth): Regulates corporate dealings, including company charges, corporate insolvency, and the creation of security interests by corporations
Australian Securities and Investments Commission Act 2001 (Cth): Provides for ASIC's regulatory oversight and consumer protection in financial services, including secured transactions
Banking Act 1959 (Cth): Relevant for security agreements involving banks and banking transactions
Competition and Consumer Act 2010 (Cth): Contains the Australian Consumer Law, which includes provisions affecting security agreements with consumers
National Consumer Credit Protection Act 2009 (Cth): Relevant when the security agreement involves consumer credit arrangements
National Credit Code: Specific regulations regarding consumer credit and related security interests
Real Property Act (State-specific): Governs security interests in real property, which may be relevant if the security agreement includes real property securities
Financial Sector (Collection of Data) Act 2001 (Cth): Relevant for reporting requirements when financial institutions are involved in security arrangements
Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth): Compliance requirements for security arrangements involving financial transactions that may trigger AML/CTF obligations
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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