Collateral Access Agreement Template for South Africa

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Key Requirements PROMPT example:

Collateral Access Agreement

"I need a Collateral Access Agreement for a mining equipment financing arrangement where a bank will hold security over equipment assets worth R50 million, with quarterly valuation requirements and specific provisions for accessing the equipment during maintenance periods."

Document background
A Collateral Access Agreement is essential in secured financing arrangements under South African law where collateral is held by a third-party security agent or custodian. This document is typically used in conjunction with facility agreements, security documents, and other financing arrangements where secured parties require regulated access to collateral. The agreement sets out detailed procedures for accessing and controlling the collateral, defines the roles and responsibilities of the security agent, and establishes clear protocols for enforcement situations. It is particularly important in the South African context due to specific requirements under the Financial Markets Act, Security by Means of Movable Property Act, and other relevant legislation. The document ensures that all parties have clarity on their rights and obligations while maintaining compliance with local regulatory requirements.
Suggested Sections

1. Parties: Identification of all parties to the agreement including the collateral provider, secured party, and custodian/security agent

2. Background: Context of the agreement, reference to related security agreements, and purpose of the collateral access arrangement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including references to South African legal terminology

4. Grant of Access Rights: Specific rights granted regarding access to and control of the collateral

5. Security Agent Appointment: Terms of appointment and authority of the security agent/custodian

6. Access Conditions: Conditions that must be met before access rights can be exercised

7. Notice Requirements: Procedures and timeframes for giving notice of access or enforcement

8. Security Agent's Duties and Responsibilities: Detailed obligations and responsibilities of the security agent

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

10. Costs and Expenses: Allocation of costs related to the arrangement and enforcement

11. Liability and Indemnification: Limitations of liability and indemnification provisions

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

13. Governing Law and Jurisdiction: Confirmation of South African law as governing law and jurisdiction provisions

14. Notices: formal requirements for notices and communications between parties

15. General Provisions: Standard boilerplate clauses including severability, whole agreement, and amendments

Optional Sections

1. Electronic Access Provisions: Specific provisions for electronic or digital access to collateral, used when collateral includes digital assets or electronic records

2. Multiple Security Agent Provisions: Additional provisions when multiple security agents are involved, used in complex security arrangements

3. Insurance Requirements: Specific insurance obligations, used when collateral requires insurance coverage

4. Foreign Law Interface: Provisions dealing with foreign law aspects, used when collateral has cross-border elements

5. Custodian Operating Procedures: Detailed operational procedures, used when specific handling or maintenance of collateral is required

6. Priority Arrangements: Provisions regarding priority of security interests, used when multiple secured parties exist

7. Force Majeure: Provisions for unforeseen circumstances affecting access, used in long-term arrangements

Suggested Schedules

1. Schedule 1 - Description of Collateral: Detailed description and identification of all collateral covered by the agreement

2. Schedule 2 - Authorized Representatives: List of authorized representatives for each party who may request or grant access

3. Schedule 3 - Access Procedures: Detailed procedures for requesting, granting, and exercising access rights

4. Schedule 4 - Fee Schedule: Details of any fees payable to the security agent/custodian

5. Schedule 5 - Notice Details: Contact details and notice requirements for all parties

6. Appendix A - Form of Access Request: Standard form for requesting access to collateral

7. Appendix B - Security Agent Operating Procedures: Detailed operational procedures and requirements for the security agent

8. Appendix C - Reporting Requirements: Templates and requirements for any required reporting on collateral status

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
Relevant Industries

Financial Services

Banking

Investment Management

Real Estate

Manufacturing

Mining

Agriculture

Retail

Technology

Infrastructure

Relevant Teams

Legal

Finance

Credit Risk

Treasury

Compliance

Operations

Securities Services

Transaction Management

Portfolio Management

Risk Management

Relevant Roles

Legal Counsel

Finance Manager

Credit Risk Manager

Security Trustee

Collateral Manager

Treasury Manager

Compliance Officer

Operations Manager

Account Manager

Transaction Manager

Risk Officer

Portfolio Manager

Facility Agent

Security Agent

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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