Security Control Agreement Template for England and Wales

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Key Requirements PROMPT example:

Security Control Agreement

"I need a Security Control Agreement for a multi-bank financing arrangement where Bank A will act as security agent for a syndicate of five lenders, with security being taken over deposit accounts and investment portfolios held with three different custodians from March 2025."

Document background
A Security Control Agreement is utilized when parties need to establish clear control mechanisms over assets subject to security interests under English and Welsh law. The agreement is particularly important in secured financing transactions where effective control over collateral is crucial for perfection of security interests. It details operational procedures, authority levels, and control mechanisms while ensuring compliance with UK financial regulations and security laws. This document is essential for establishing the rights and obligations of all parties involved in the security arrangement.
Suggested Sections

1. Parties: Identification and details of all parties to the agreement including security provider, security taker, and any security agent

2. Background: Context of the security arrangement, underlying obligations, and purpose of the control agreement

3. Definitions: Defined terms used throughout the agreement including specific financial and security-related terminology

4. Security Assets: Detailed description and scope of the assets subject to security control

5. Control Mechanisms: Specific procedures and requirements for controlling and managing security assets

6. Rights and Obligations: Detailed responsibilities and duties of each party in relation to the security assets

7. Events of Default: Circumstances constituting breach and their consequences under the agreement

8. Enforcement: Rights and procedures for enforcing security following an event of default

9. Representations and Warranties: Statements of fact and assurances given by the parties

10. Governing Law and Jurisdiction: Specification of English and Welsh law as governing law and jurisdiction for disputes

Optional Sections

1. Security Agent Provisions: Provisions governing the appointment, roles, and responsibilities of a security agent when acting for multiple secured parties

2. Intercreditor Provisions: Provisions regulating the relationship between different classes of secured creditors and their respective rights

3. Foreign Law Assets: Additional provisions dealing with security assets located in jurisdictions outside England and Wales

4. Data Protection Compliance: Specific provisions ensuring compliance with UK GDPR and Data Protection Act 2018 when handling personal data

5. Anti-Money Laundering Provisions: Additional compliance requirements when the agreement involves regulated entities or activities

Suggested Schedules

1. Schedule of Security Assets: Comprehensive list and description of all assets subject to security control

2. Form of Notice: Template notices required for perfection of security and notification to relevant parties

3. Control Procedures: Detailed operational procedures and protocols for implementing security control

4. Authorized Signatories: List of persons authorized to give instructions regarding the security assets

5. Required Regulatory Filings: List and forms of any regulatory filings required to perfect or maintain the security

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
Relevant Teams
Relevant Roles
Industries

Financial Services and Markets Act 2000: Primary legislation governing financial services regulation in the UK, including security arrangements within financial markets

Companies Act 2006: Core company law legislation affecting corporate security arrangements and registration requirements

Law of Property Act 1925: Fundamental legislation governing property rights and security interests in real property

Enterprise Act 2002: Legislation affecting enforcement of security and insolvency proceedings

Insolvency Act 1986: Key legislation governing the treatment of security interests in insolvency situations

Financial Collateral Arrangements (No.2) Regulations 2003: Specific regulations governing financial collateral arrangements and security interests in financial instruments

Companies (Registration of Charges) Regulations 2009: Regulations governing the registration of security interests and charges created by companies

UK General Data Protection Regulation: Post-Brexit data protection legislation governing the processing and protection of personal data in security arrangements

Data Protection Act 2018: UK's implementation of data protection requirements, complementing the UK GDPR

FCA Regulations: Financial Conduct Authority regulatory requirements affecting security control arrangements in regulated firms

PRA Requirements: Prudential Regulation Authority requirements affecting security arrangements in prudentially regulated institutions

Bank of England Guidelines: Central bank guidance affecting security arrangements in the financial system

Common Law Principles: Established case law principles governing security interests and their enforcement

Equitable Principles: Principles of equity affecting the creation and enforcement of security interests

EU Retained Law: European Union laws retained in UK law post-Brexit affecting security arrangements

Anti-Money Laundering Regulations: Regulations preventing the use of security arrangements for money laundering purposes

Counter-Terrorist Financing Regulations: Regulations preventing the use of security arrangements for terrorist financing

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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