Third Party Security Agreement Template for Singapore

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Key Requirements PROMPT example:

Third Party Security Agreement

"Need a Third Party Security Agreement under Singapore law where my company (ABC Trading Pte Ltd) will provide security over our commercial property to secure a S$5 million loan that our joint venture partner is taking from United Bank on 15 March 2025."

Document background
A Third Party Security Agreement is commonly used in Singapore when a party wishes to support another's borrowing or financial obligations without providing direct funding. This arrangement is particularly common in corporate group structures, family businesses, or where business partners provide cross-support. The agreement must comply with Singapore's security and corporate laws, including registration requirements with ACRA where applicable. It typically details the secured assets, enforcement mechanisms, and contains necessary protections for all parties involved.
Suggested Sections

1. Parties: Identification of security provider, secured party, and principal debtor

2. Background: Context of the security arrangement and relationship between parties

3. Definitions: Key terms used throughout the agreement including secured obligations, security assets, and enforcement rights

4. Grant of Security Interest: Core provisions creating the security interest and specifying the assets being secured

5. Secured Obligations: Definition and scope of obligations being secured under the agreement

6. Representations and Warranties: Security provider's confirmations regarding authority, ownership of assets, and capacity to grant security

7. Covenants: Ongoing obligations of the security provider regarding maintenance and preservation of security

8. Enforcement: Rights and remedies available to the secured party upon default

9. Governing Law and Jurisdiction: Singapore law as governing law and jurisdiction provisions

Optional Sections

1. Further Assurance: Additional actions required to perfect security or maintain its validity

2. Power of Attorney: Appointment of secured party as attorney for dealing with secured assets

3. Assignment and Transfer: Provisions governing transfer of security interest to third parties

Suggested Schedules

1. Schedule of Secured Assets: Detailed description and identification of assets subject to security

2. Form of Notice: Standard form notices required for perfection of security

3. Principal Security Agreement: Reference copy or details of the main facility or loan agreement

4. Corporate Authorizations: Required corporate approvals, board resolutions, and other authorizations

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
Industries

Securities and Futures Act (Cap. 289): Primary legislation governing securities, futures contracts, and security interests. Contains key provisions on security interests and collateral arrangements.

Companies Act (Cap. 50): Regulates corporate matters including registration of charges, requirements for corporate authorization, and mandatory filing requirements with ACRA (Accounting and Corporate Regulatory Authority).

Property Law Act (Cap. 242): Contains fundamental provisions relating to security interests over property and rules regarding the creation and enforcement of security interests.

Insolvency, Restructuring and Dissolution Act 2018: Addresses priority of security interests in insolvency and impact on security enforcement during insolvency proceedings.

Personal Data Protection Act 2012: Relevant when personal data is involved in the security arrangement, ensuring compliance with data protection requirements.

Banking Act (Cap. 19): Applicable when security arrangement involves banks or financial institutions, providing specific regulatory requirements.

Registration of Deeds Act: Sets out requirements for registration of security interests over immovable property.

Common Law Principles: Encompasses equitable principles regarding security interests and relevant case law on third party security arrangements.

Stamp Duties Act: Governs stamp duty implications and requirements for security documents in Singapore.

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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