Collateral Account Control Agreement Template for Denmark

The Collateral Account Control Agreement is a fundamental document in secured financing transactions under Danish law, implementing both local regulations and EU directives. It is used when a lender or security holder requires control over bank accounts as collateral security, typically in project finance, acquisition finance, or general corporate lending scenarios. The agreement ensures that the security interest in the accounts is properly perfected under Danish law and provides the secured party with the necessary control rights. The document establishes clear procedures for account operation, including how and when the secured party can take exclusive control, the account bank's obligations to follow instructions, and the account holder's permitted activities. This type of agreement is particularly important in Denmark due to specific requirements under the Danish Act on Financial Collateral Arrangements and the Danish Securities Trading Act.

1. Parties: Identifies the account holder (pledgor), secured party, and account bank as parties to the agreement

2. Background: Sets out the context of the agreement, including reference to the underlying security arrangement and the purpose of the account control agreement

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

4. Account Control and Security Interest: Establishes the secured party's control over the account and confirms the security interest

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

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

7. Account Holder's Rights and Obligations: Defines the account holder's limited rights to access the account and their ongoing obligations

8. Notice of Exclusive Control: Procedures for the secured party to exercise exclusive control over the account

9. Fees and Expenses: Sets out the fee arrangement and responsibility for expenses

10. Representations and Warranties: Standard representations and warranties from all parties

11. Account Bank's Liability and Indemnification: Limits on account bank's liability and indemnification provisions

12. Termination: Circumstances and procedures for terminating the agreement

13. Notices: Procedures for giving notices under the agreement

14. Governing Law and Jurisdiction: Specifies Danish law as governing law and jurisdiction for disputes

15. Miscellaneous: Standard boilerplate provisions including amendments, assignments, and severability