Property Collateral Agreement Template for Netherlands

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Key Requirements PROMPT example:

Property Collateral Agreement

"I need a Property Collateral Agreement under Dutch law for a commercial warehouse in Rotterdam being used as security for a €5 million business loan, with specific provisions for ongoing logistics operations and subletting rights."

Document background
The Property Collateral Agreement is a crucial document in secured financing transactions under Dutch law, used when real property is offered as security for financial obligations. It is commonly utilized in commercial lending, real estate financing, and corporate borrowing arrangements where real estate assets serve as collateral. The agreement must comply with strict requirements of the Dutch Civil Code and requires notarial execution and registration with the Land Registry (Kadaster) for validity. The document details the property description, parties' rights and obligations, enforcement mechanisms, and includes specific provisions required by Dutch law for creating valid security interests. This type of agreement is particularly important in the Netherlands' robust real estate financing market, where property collateral is a common form of security for loans and other financial obligations.
Suggested Sections

1. Parties: Identification of the security provider (collateral giver) and the secured party (collateral taker), including full legal names, addresses, and registration details

2. Background: Context of the agreement, reference to any underlying obligations or facility agreements, and purpose of the security

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Creation of Security Interest: Express creation of the security interest over the property, including the type of security right being granted

5. Secured Obligations: Definition and scope of the obligations being secured by the property collateral

6. Property Description: Detailed description of the property serving as collateral, including cadastral details and registration information

7. Representations and Warranties: Statements by the security provider about ownership, condition, and status of the property

8. Covenants: Ongoing obligations of the security provider regarding maintenance, insurance, and use of the property

9. Enforcement: Rights and procedures for enforcement in case of default

10. Power of Attorney: Authority granted to the secured party to act on behalf of the security provider in specified circumstances

11. Notices: Process and requirements for formal communications between parties

12. Governing Law and Jurisdiction: Confirmation of Dutch law as governing law and jurisdiction for disputes

13. Counterparts and Execution: Provisions for signing and completing the agreement

Optional Sections

1. Third Party Rights: Required when there are existing tenants or other third-party rights affecting the property

2. Environmental Provisions: Needed for properties with potential environmental risks or compliance requirements

3. Construction Provisions: Relevant when the property is under construction or development

4. Multiple Properties: Required when the collateral consists of multiple properties with specific provisions for each

5. Cross-Collateralization: Needed when the property secures multiple obligations or is part of a broader security package

6. Subordination: Required when there are multiple security interests that need to be ranked

7. Release Provisions: Detailed provisions for partial release of security, needed for development properties or multiple unit properties

Suggested Schedules

1. Property Description Schedule: Detailed technical and legal description of the property, including maps and cadastral information

2. Title Documents: List and copies of relevant title documents and cadastral registration

3. Existing Encumbrances: Details of any existing mortgages, easements, or other encumbrances affecting the property

4. Insurance Requirements: Specific insurance requirements and minimum coverage levels

5. Form of Notices: Standard forms for various notices required under the agreement

6. Permitted Activities: List of activities permitted on the property without secured party consent

7. Registration Requirements: Forms and information required for registering the security interest

8. Valuation Report: Recent property valuation report or appraisal

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

Banking and Financial Services

Real Estate

Commercial Property

Real Estate Development

Construction

Industrial Manufacturing

Retail

Hospitality

Logistics and Warehousing

Healthcare

Relevant Teams

Legal

Real Estate

Finance

Risk Management

Commercial Lending

Compliance

Treasury

Property Management

Credit Administration

Transaction Management

Relevant Roles

Legal Counsel

Real Estate Lawyer

Finance Manager

Property Manager

Credit Risk Officer

Commercial Lending Officer

Real Estate Development Manager

Compliance Officer

Corporate Treasurer

Notary

Security Registration Specialist

Real Estate Transaction Manager

Loan Officer

Portfolio Manager

Industries
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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