��������Ƶ

An Account Control Agreement Collateral under Philippine law is utilized in secured financing transactions where deposit accounts serve as collateral. This document becomes necessary when lenders require direct control over a borrower's bank accounts as part of their security package. The agreement establishes the mechanisms by which the secured party can exercise control over the accounts, typically including rights to give instructions to the deposit bank and restrict the account holder's access upon specified events of default. It must comply with Philippine banking regulations, particularly the General Banking Law and Bank Secrecy Law, while also addressing requirements under the National Payment Systems Act and Anti-Money Laundering Act. The document is commonly used in project finance, corporate lending, and other secured transactions where cash collateral is a crucial component of the security structure.

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

2. Background: Explains the context of the agreement, including reference to related security agreements and the purpose of establishing control over the accounts

3. Definitions: Defines key terms used throughout the agreement, including Account, Control, Security Interest, and Secured Obligations

4. Account Control Arrangements: Core section detailing the control mechanisms, rights of the secured party, and operational procedures for the account

5. Bank's Rights and Responsibilities: Outlines the deposit bank's obligations, limitations of liability, and rights regarding the controlled account

6. Security Interest: Confirms and details the security interest granted over the account and related assets

7. Instructions and Notice Requirements: Specifies procedures for giving instructions regarding the account and required notices between parties

8. Fees and Expenses: Details the fees payable to the bank and allocation of expenses

9. Representations and Warranties: Standard representations from all parties regarding authority, binding obligations, and no conflicts

10. Termination: Conditions and process for terminating the agreement

11. Miscellaneous: Standard boilerplate provisions including governing law, jurisdiction, amendments, and notices