Blocked Account Control Agreement Template for Pakistan

The Blocked Account Control Agreement is a crucial document in secured financing transactions under Pakistani law, typically used in project finance, corporate lending, and international trade transactions. It creates a security arrangement whereby a bank account is "blocked" in favor of a secured party, usually a lender or security trustee. The agreement details the circumstances under which the account can be operated, the control mechanisms available to the secured party, and the bank's obligations in maintaining and operating the account. This document is essential when parties need to establish clear control over cash flows and ensure security over bank accounts in Pakistan, particularly in complex financing arrangements. The agreement must comply with local banking regulations, including the State Bank of Pakistan's requirements, while providing practical mechanisms for account control and operation.

1. Parties: Identifies and defines the Account Holder, the Bank, and the Secured Party/Beneficiary

2. Background: Explains the context of the agreement, including reference to any underlying credit or security arrangements

3. Definitions: Defines key terms used throughout the agreement, including 'Blocked Account', 'Control Notice', 'Instructions', etc.

4. Account Establishment and Maintenance: Details of the blocked account setup, maintenance requirements, and account specifications

5. Control and Security Interest: Establishes the secured party's control rights over the account and nature of security interest

6. Operating Procedures: Specifies procedures for operating the account, including authorized instructions and authentication methods

7. Bank's Rights and Responsibilities: Outlines the bank's obligations, responsibilities, and rights regarding account management

8. Account Holder's Covenants: Details the account holder's obligations and restrictions regarding the account

9. Secured Party's Rights: Specifies the secured party's rights to give instructions and control the account

10. Fees and Expenses: Details of all applicable fees, charges, and expense allocation

11. Representations and Warranties: Standard representations and warranties from all parties

12. Term and Termination: Duration of the agreement and circumstances for termination

13. Notices: Procedures for giving notices and communications between parties

14. Governing Law and Jurisdiction: Specifies Pakistani law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate provisions including amendments, assignments, severability