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Property Collateral Agreement Template for Singapore

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Key Requirements PROMPT example:

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."

Document background
The Property Collateral Agreement is essential in secured lending transactions under Singapore law where real property serves as security. This document is typically used when a property owner seeks financing and offers their property as collateral. It establishes the lender's security interest, ensures compliance with Singapore's property and banking regulations, and provides clear mechanisms for enforcement. The agreement includes crucial details about the property, the underlying debt, maintenance obligations, and the parties' rights and responsibilities.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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)

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






































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Industries

Land Titles Act (Cap. 157): Primary legislation governing registered land in Singapore, dealing with the registration and transfer of titles, encumbrances, and interests in land

Conveyancing and Law of Property Act (Cap. 61): Regulates property transactions and legal requirements for property transfers, mortgages, and other real estate dealings

Registration of Deeds Act (Cap. 269): Governs the registration of deeds and instruments affecting land interests in Singapore

Property Tax Act (Cap. 254): Legislation concerning taxation of property and related matters that may affect collateral value

Residential Property Act (Cap. 274): Regulates foreign ownership of residential property in Singapore

Banking Act (Cap. 19): Regulates banking institutions and their activities, including property financing and security arrangements

Moneylenders Act (Cap. 188): Governs money lending activities and related security arrangements

Mortgage and Charges Registration Act: Deals with the registration and regulation of mortgages and charges on property

Companies Act (Cap. 50): Relevant for corporate property holdings and registration of company charges

Supreme Court of Judicature Act: Establishes jurisdiction and powers of courts in property-related disputes and enforcement

State Courts Act: Defines jurisdiction of State Courts in property-related matters

Rules of Court: Procedural rules governing property-related litigation and enforcement proceedings

Bankruptcy Act (Cap. 20): Relevant for understanding creditor rights and property disposition in bankruptcy

Insolvency, Restructuring and Dissolution Act 2018: Modern framework for corporate insolvency and its impact on property collateral

Housing and Development Board Act: Governs public housing properties and related security arrangements

Planning Act: Controls land use and development, affecting property value and use as collateral

Environmental Public Health Act: Environmental regulations that may affect property use and value

Building Control Act: Regulates building works and safety standards affecting property value

Building Maintenance and Strata Management Act: Governs strata-titled properties and their management

MAS Guidelines: Regulatory guidelines from Monetary Authority of Singapore affecting property financing

SLA Regulations: Singapore Land Authority regulations governing land use and administration

CEA Guidelines: Council for Estate Agencies guidelines affecting property transactions and valuations

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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