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The Collateral Account Control Agreement is a critical security document used in Malaysian financing transactions where control over bank accounts forms part of the security package. It is typically employed in project financing, corporate lending, and structured finance transactions where lenders require direct control over cash flows and account balances. The agreement establishes the rights and obligations of the account holder, secured party, and account bank, ensuring compliance with Malaysian financial services regulations and banking laws. It includes detailed provisions for account operation during normal business conditions and specific triggers that allow the secured party to take exclusive control of the accounts following certain events. The document is structured to comply with Malaysian legal requirements, particularly under the Financial Services Act 2013 and related banking regulations, while providing practical operational procedures for all parties involved.

1. Parties: Identifies the three key parties: Account Holder, Secured Party, and Account Bank

2. Background: Sets out the context of the security arrangement and the purpose of the agreement

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Establishment of Control: Details how control over the account is established and maintained

5. Bank's Rights and Responsibilities: Outlines the obligations and rights of the Account Bank

6. Control and Security Interest: Describes the nature and extent of the security interest and control arrangements

7. Account Operation: Sets out procedures for operating the account, including authorized instructions

8. Instructions and Notice of Exclusive Control: Details how instructions are given and the process for implementing exclusive control

9. Representations and Warranties: Contains statements of fact and assurances from all parties

10. Fees and Expenses: Specifies fees payable to the Account Bank and allocation of expenses

11. Indemnification: Sets out indemnification obligations between the parties

12. Amendments and Termination: Procedures for modifying the agreement and circumstances for termination

13. Notices: Specifies how formal communications between parties should be made

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

15. General Provisions: Contains standard boilerplate provisions including severability, counterparts, etc.