Asset Pledge Agreement Template for Nigeria

The Asset Pledge Agreement is a crucial security document used in Nigerian commercial and financial transactions when a party needs to create security over assets to secure obligations. This document type is commonly used in lending arrangements, corporate finance transactions, and other commercial dealings where collateral is required. The agreement must comply with Nigerian law, particularly the Secured Transactions in Movable Assets Act 2017 and related regulations, and typically includes detailed descriptions of the pledged assets, the secured obligations, and enforcement mechanisms. It requires registration with appropriate authorities, such as the National Collateral Registry, to ensure enforceability. The Asset Pledge Agreement is particularly important in the Nigerian context given the country's emphasis on secured lending and the need for robust security documentation in commercial transactions.

1. Parties: Identifies the pledgor and pledgee, including their full legal names, registration details, and addresses

2. Background: Sets out the context of the agreement, including reference to any underlying obligations or facilities

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

4. Grant of Security Interest: Creates and establishes the pledge over the assets in favor of the pledgee

5. Secured Obligations: Defines the obligations being secured by the pledge

6. Representations and Warranties: Pledgor's confirmations regarding ownership, authority, and status of the pledged assets

7. Covenants: Ongoing obligations of the pledgor regarding maintenance, insurance, and dealing with the pledged assets

8. Perfection Requirements: Steps required to perfect the security interest, including registration requirements

9. Events of Default: Circumstances that constitute default under the agreement

10. Enforcement: Rights and remedies of the pledgee upon occurrence of an event of default

11. Power of Attorney: Appointment of pledgee as pledgor's attorney for enforcement purposes

12. Notices: Process and requirements for giving notices under the agreement

13. Governing Law and Jurisdiction: Confirms Nigerian law as governing law and jurisdiction for disputes

14. Boilerplate Provisions: Standard contractual provisions including amendments, assignments, and severability