Securities Account Control Agreement Template for Denmark

The Securities Account Control Agreement is a crucial document in secured financing transactions under Danish law, used when securities accounts serve as collateral. This agreement is essential for establishing perfection through control over financial collateral arrangements, as required by the Danish Financial Collateral Act and related EU regulations. The document is typically used in connection with loan agreements, security arrangements, or other financing transactions where securities accounts serve as collateral. It contains detailed provisions regarding account control mechanisms, operational procedures, and the rights and obligations of all parties involved. The agreement must comply with specific requirements under Danish financial regulations and EU directives, particularly regarding the perfection of security interests in financial instruments and the protection of collateral arrangements in insolvency scenarios.

1. Parties: Identifies the Account Holder, Secured Party, and Securities Intermediary/Account Bank

2. Background: Explains the security arrangement and relationship between parties

3. Definitions: Defines key terms including Account, Securities, Control, and Collateral

4. Account Control and Security: Establishes the security interest and control arrangement over the Securities Account

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

6. Account Holder's Rights and Restrictions: Specifies the Account Holder's permitted activities and limitations regarding the account

7. Secured Party's Rights: Outlines the Secured Party's control rights and instruction capabilities

8. Priority of Instructions: Establishes hierarchy of instructions between Secured Party and Account Holder

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

10. Notice of Exclusive Control: Procedures for implementing exclusive control by Secured Party upon default

11. Fees and Expenses: Allocation of costs and fees related to account maintenance and agreement

12. Termination: Conditions and process for terminating the agreement

13. Governing Law and Jurisdiction: Specifies Danish law application and jurisdiction for disputes

14. Miscellaneous: Standard provisions including notices, amendments, and severability