Bank Account Pledge Agreement Template for Ireland

A Bank Account Pledge Agreement is a crucial security document used in financing transactions where lenders require security over cash deposits or bank accounts. This document is particularly relevant in the Irish jurisdiction, where it must comply with both domestic legislation and EU regulations, specifically the Financial Collateral Arrangements Regulations. The agreement is commonly used in corporate lending, project finance, and structured finance transactions, providing lenders with security over the borrower's cash assets. It details the mechanism for creating and perfecting the pledge, account operating procedures, and enforcement rights, while ensuring compliance with Irish banking regulations and security creation requirements. The document becomes essential when parties need to establish clear rights and control over bank accounts as part of broader financing arrangements or standalone security packages.

1. Parties: Identifies the pledgor, pledgee (security taker), and account bank if different from the pledgee

2. Background: Sets out the context of the pledge agreement, referring to any underlying facility or credit agreement

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles, including references to the pledged accounts and relevant legislation

4. Creation of Pledge: Establishes the pledge over the account(s) and describes the secured obligations

5. Perfection and Control: Details the requirements for perfecting the security interest and establishing control over the account(s)

6. Operation of Pledged Accounts: Specifies how the pledged accounts will be operated, including withdrawal rights and restrictions

7. Representations and Warranties: Contains pledgor's representations regarding account ownership, capacity, and absence of other security interests

8. Covenants: Sets out ongoing obligations of the pledgor regarding the pledged accounts

9. Enforcement: Details the pledgee's rights and remedies upon an enforcement event

10. Notices: Specifies how formal communications between parties should be made

11. Miscellaneous: Contains standard boilerplate provisions including amendments, assignments, severability

12. Governing Law and Jurisdiction: Specifies Irish law as governing law and Irish courts' jurisdiction