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Collateral Agreement Template for Ireland

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Key Requirements PROMPT example:

Collateral Agreement

"I need a Collateral Agreement under Irish law to secure a €50 million revolving credit facility between our bank and a corporate borrower, with cash and listed securities as collateral, to be effective from March 2025."

Document background
The Collateral Agreement is a crucial document in financial transactions under Irish law, used to secure obligations through various types of assets including cash, securities, and other financial instruments. It is particularly relevant in lending arrangements, derivatives transactions, and other financial structures where security over assets is required. The agreement must comply with Irish law requirements, including the European Communities (Financial Collateral Arrangements) Regulations 2010 and relevant provisions of the Companies Act 2014. It typically includes detailed provisions on creation and perfection of security interests, valuation mechanisms, enforcement rights, and operational procedures for managing collateral. This document is essential for financial institutions and corporations engaging in secured transactions in Ireland, providing legal certainty and protection for the parties involved.
Suggested Sections

1. Parties: Identification of the parties: Collateral Provider, Collateral Taker, and any Security Trustee if applicable

2. Background: Context of the agreement, reference to any related agreements (e.g., master agreement, facility agreement)

3. Definitions and Interpretation: Key terms used in the agreement, including specific Irish law definitions and interpretation rules

4. Grant of Security: Core security interest creation language, including specifics required under Irish law

5. Perfection of Security: Requirements for perfecting the security interest, including registration requirements

6. Representations and Warranties: Standard and collateral-specific representations, including title, authority, and compliance

7. Covenants: Positive and negative obligations regarding the collateral

8. Valuation and Margin Maintenance: Procedures for valuing collateral and maintaining required margin levels

9. Enforcement: Rights and procedures upon default, including Irish law enforcement methods

10. Powers of the Collateral Taker: Specific rights and powers granted to the collateral taker

11. Further Assurance: Obligations to execute additional documents and take necessary steps

12. Notices: Communication procedures between parties

13. Assignment and Transfer: Rules regarding transfer of rights under the agreement

14. Governing Law and Jurisdiction: Irish law as governing law and jurisdiction provisions

Optional Sections

1. Security Trustee Provisions: Required when a security trustee structure is used for multiple beneficiaries

2. Income and Voting Rights: Needed for securities collateral to address dividends and voting rights

3. Control Agreement Provisions: Required when involving account bank or custodian control arrangements

4. Cross-Border Provisions: Necessary when collateral has foreign elements or multiple jurisdictions are involved

5. Regulatory Compliance: Specific provisions required for regulated entities or specific regulatory regimes

6. Tax Provisions: Detailed tax provisions when tax implications are significant

7. Insurance: Required for physical collateral requiring insurance coverage

Suggested Schedules

1. Schedule 1 - Collateral Description: Detailed description and specification of the collateral assets

2. Schedule 2 - Perfection Requirements: Specific actions required to perfect the security interest

3. Schedule 3 - Forms of Notice: Standard forms of notices to third parties (e.g., account banks, custodians)

4. Schedule 4 - Valuation Methodology: Detailed procedures for valuing different types of collateral

5. Schedule 5 - Power of Attorney: Form of power of attorney for perfection and enforcement

6. Appendix A - Operating Procedures: Detailed procedures for collateral transfers, substitutions, and margin calls

7. Appendix B - Required Forms: Standard forms for collateral transfers, notifications, and other routine operations

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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

Financial Services

Investment Management

Insurance

Asset Management

Private Equity

Corporate Finance

Capital Markets

Treasury Services

Wealth Management

Relevant Teams

Legal

Treasury

Risk Management

Operations

Compliance

Credit

Documentation

Transaction Management

Portfolio Management

Client Services

Finance

Relevant Roles

Treasury Manager

Collateral Manager

Legal Counsel

Risk Manager

Compliance Officer

Credit Risk Officer

Operations Manager

Transaction Manager

Portfolio Manager

Documentation Specialist

Security Trustee Officer

Relationship Manager

Chief Financial Officer

Head of Treasury

Financial Controller

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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