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Property Collateral Agreement
"I need a Property Collateral Agreement for my Singapore commercial property to secure a 5-year term loan of SGD 2.5 million from DBS Bank, with the agreement to be effective from March 1, 2025."
1. Parties: Identifies the chargor (property owner) and chargee (lender)
2. Background: Details of the underlying loan and purpose of the security
3. Definitions: Key terms used throughout the agreement
4. Grant of Security: Core terms creating the security interest over the property
5. Property Description: Detailed legal description of the collateral property
6. Representations and Warranties: Chargor's confirmations about property ownership and condition
7. Covenants: Ongoing obligations of the chargor regarding the property
8. Enforcement: Chargee's rights upon default
9. Governing Law: Specification of Singapore law as governing law
1. Insurance: Requirements for property insurance when required by the lender
2. Assignment of Rental Income: Security over rental income from the property when the property is or may be rented out
3. Further Assurance: Obligation to execute additional documents if needed, typically used in complex transactions or with institutional lenders
1. Property Schedule: Detailed property information including title details
2. Form of Notice: Standard forms for notices under the agreement
3. Insurance Requirements: Specific insurance requirements if applicable
4. Existing Encumbrances: List of existing charges or encumbrances on the property
5. Property Valuation Report: Recent valuation of the property (if required)
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