Title Transfer Collateral Agreement Template for Denmark

The Title Transfer Collateral Agreement (TTCA) is essential for financial institutions and market participants operating under Danish law who need to manage counterparty risk through collateral arrangements. This document is typically used in financial transactions where one party transfers full ownership of collateral to another party while retaining the right to equivalent collateral upon performing their obligations. The agreement incorporates requirements from Danish financial regulations, including the implementation of the EU Financial Collateral Directive, and addresses specific aspects of Danish property and insolvency law. It is particularly relevant for derivatives trading, securities lending, and repo transactions where Danish law is the governing law. The document includes detailed provisions for valuation mechanisms, margin maintenance, substitution rights, and enforcement procedures, all structured to be enforceable under Danish law.

1. Parties: Identification of the transferor and transferee, including their registered details and regulatory status

2. Background: Context of the agreement and relationship between the parties

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including references to Danish law concepts

4. Title Transfer Arrangement: Core provisions establishing the title transfer mechanism and its legal effect

5. Provision of Collateral: Procedures and requirements for delivering and maintaining collateral

6. Valuation and Margin: Methods for valuing collateral and procedures for margin calls

7. Substitution and Return: Rights and procedures for substituting collateral and conditions for its return

8. Income and Voting Rights: Treatment of income on collateral and exercise of voting rights

9. Events of Default: Specification of events triggering default and consequences

10. Close-out and Set-off: Procedures for closing out transactions and setting off obligations

11. Representations and Warranties: Standard and specific representations by both parties

12. Tax and Regulatory: Tax provisions and regulatory compliance obligations

13. Notices: Communication procedures and contact details

14. Governing Law and Jurisdiction: Danish law as governing law and jurisdiction provisions

15. Miscellaneous: Standard boilerplate provisions including severability, amendments, etc.