Ƶ

Third Party Pledge Agreement for South Africa

Third Party Pledge Agreement Template for South Africa

A comprehensive security agreement governed by South African law, where a third party (not the principal debtor) provides security in the form of a pledge over specific assets to secure another party's obligations. The agreement details the pledge creation, perfection requirements, parties' rights and obligations, enforcement mechanisms, and release conditions, all within the framework of South African security and property law, particularly the Security by Means of Movable Property Act and related legislation.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Third Party Pledge Agreement

Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.

What is a Third Party Pledge Agreement?

The Third Party Pledge Agreement is a crucial security document used in South African financing arrangements where security is provided by a party other than the principal debtor. This arrangement is common in group company structures, related party transactions, or where additional security is required to support financing arrangements. The document must comply with South African security and property law requirements, including the Security by Means of Movable Property Act. It typically includes detailed provisions on the pledged assets, perfection requirements, enforcement mechanisms, and the rights and obligations of all parties. The agreement is particularly important in commercial lending, corporate restructuring, and project finance contexts, where third-party security is often required to strengthen the security package.

What sections should be included in a Third Party Pledge Agreement?

1. Parties: Identification of the Pledgor (third party providing security), Creditor (secured party), and Principal Debtor

2. Background: Context of the underlying debt obligation and reason for the pledge agreement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Secured Obligations: Clear description of the obligations being secured by the pledge

5. Creation of Pledge: Express creation of the pledge and confirmation of the pledgor's right to pledge the assets

6. Perfection Requirements: Steps required to perfect the pledge, including delivery or registration requirements

7. Rights and Obligations of the Pledgor: Pledgor's obligations regarding maintenance, insurance, and preservation of pledged assets

8. Rights and Obligations of the Creditor: Creditor's rights regarding the pledged assets and obligations for their safekeeping

9. Enforcement: Circumstances and procedures for enforcing the pledge

10. Duration and Release: Term of the pledge and conditions for its release

11. Representations and Warranties: Standard representations regarding ownership, authority, and absence of encumbrances

12. Costs and Expenses: Allocation of costs related to the pledge agreement

13. Notices: Process for giving notices under the agreement

14. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and amendments

What sections are optional to include in a Third Party Pledge Agreement?

1. Income and Distributions: Required when pledged assets generate income or distributions (e.g., shares or investment instruments)

2. Further Security: Used when additional security might be required in specific circumstances

3. Power of Attorney: Optional clause granting creditor power to perfect or enforce the pledge in certain circumstances

4. Insurance Requirements: Detailed insurance obligations when pledged assets require specific insurance coverage

5. Tax Provisions: Required when there are specific tax implications related to the pledged assets

6. Voting Rights: Necessary when pledged assets are shares or other voting securities

7. Step-In Rights: Optional provisions allowing creditor to take control of assets in specific circumstances

What schedules should be included in a Third Party Pledge Agreement?

1. Schedule 1 - Description of Pledged Assets: Detailed description and/or inventory of all assets subject to the pledge

2. Schedule 2 - Principal Agreement: Copy or summary of the underlying agreement creating the secured obligations

3. Schedule 3 - Perfection Requirements: Specific steps and documents required for perfecting the pledge

4. Schedule 4 - Form of Notice: Standard form notices for various communications under the agreement

5. Appendix A - Required Resolutions: Corporate or other resolutions required to authorize the pledge

6. Appendix B - Specimen Signatures: Signature specimens of authorized signatories

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

South Africa

Publisher

Ƶ

Document Type

Security Agreement

Cost

Free to use
Relevant legal definitions

































Clauses






























Relevant Industries

Banking and Financial Services

Real Estate

Mining and Resources

Manufacturing

Retail

Agriculture

Technology

Infrastructure

Energy

Telecommunications

Investment Holdings

Professional Services

Relevant Teams

Legal

Finance

Risk Management

Compliance

Treasury

Corporate Secretariat

Credit

Commercial

Investment

Operations

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Risk Manager

Compliance Officer

Corporate Lawyer

Security Trustee

Transaction Manager

Credit Manager

Treasury Manager

Company Secretary

Commercial Director

Asset Manager

Investment Officer

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

Find the exact document you need

Real Estate Security Agreement

A South African law-governed agreement establishing security rights over real property as collateral for specified obligations.

find out more

Stock Broker Agreement

A South African law-governed agreement between a licensed stock broker and client establishing terms for securities trading and related services, ensuring compliance with local financial regulations.

find out more

Private Security Agreement

South African private security services agreement establishing terms, conditions, and compliance requirements under local security industry regulations.

find out more

Cybersecurity Agreement

South African law-governed agreement establishing cybersecurity services framework and compliance with POPIA and Cybercrimes Act requirements.

find out more

Collateral Agreement

A South African law-governed agreement establishing security interests over assets to secure obligations, detailing creation, maintenance, and enforcement of security rights.

find out more

Security Interest Agreement

A South African law-governed agreement creating security interests over assets to secure obligations, establishing rights and enforcement mechanisms under local security laws.

find out more

Stock Pledge And Security Agreement

A South African law-governed agreement creating security over shares or securities as collateral for financial obligations.

find out more

Loan Against Shares Agreement

A South African law-governed agreement for lending money against shares as collateral, detailing loan terms and security arrangements.

find out more

Note And Warrant Purchase Agreement

A South African law-governed agreement for the issuance and purchase of convertible notes and warrants, combining debt financing with equity participation rights.

find out more

Data Protection Agreement

A South African law-governed agreement establishing terms for personal information processing between a responsible party and operator under POPIA.

find out more

Membership Interest Pledge Agreement

A South African law-governed agreement creating a pledge over membership interests in a company as security for obligations.

find out more

Irrevocable Pledge Agreement

A South African law-governed agreement creating an irrevocable pledge over assets as security for obligations, establishing rights and enforcement mechanisms for the secured party.

find out more

Lease Security Agreement

A South African law-governed agreement establishing terms and conditions for lease security deposits, ensuring compliance with local rental housing legislation and protecting both landlord and tenant interests.

find out more

Guaranty And Security Agreement

A South African law-governed agreement combining guarantee obligations with security arrangements to secure third-party obligations through both personal undertakings and asset security.

find out more

Equipment Security Agreement

A South African law-governed agreement creating security interests over equipment assets, establishing rights and obligations between secured party and equipment owner.

find out more

Auto Loan Security Agreement

A South African law-governed agreement creating a security interest in a financed vehicle, establishing loan terms and security arrangements in compliance with local credit legislation.

find out more

Personal Security Agreement

A South African law-governed agreement establishing terms and conditions for personal security services, including protection scope, operational procedures, and compliance requirements.

find out more

Information Security Agreement

A South African law-governed agreement establishing information security requirements and POPIA compliance measures between parties.

find out more

Confidentiality And Security Agreement

South African Confidentiality and Security Agreement incorporating POPIA compliance requirements and comprehensive information protection measures.

find out more

Business Security Agreement

A South African law-governed agreement establishing security interests over business assets, detailing the rights and obligations of security providers and holders.

find out more

Security Deposit Contract

A South African law-governed agreement establishing terms for handling a security deposit between landlord and tenant, including payment, holding, and return conditions.

find out more

Third Party Collateral Agreement

A South African law-governed agreement where a third party provides collateral to secure another party's debt obligations.

find out more

Deposit Pledge Agreement

A South African law-governed agreement creating a security interest over a cash deposit as collateral for specified obligations.

find out more

Bank Account Pledge Agreement

South African law-governed agreement creating a pledge over bank accounts as security for obligations, including rights to account balances and enforcement mechanisms.

find out more

Inventory Security Agreement

A South African law-governed agreement creating security interests over inventory assets, establishing rights and obligations between a grantor and secured party.

find out more

Reinsurance Security Agreement

A South African law-governed agreement establishing security arrangements between reinsurer and cedent, detailing collateral requirements and enforcement rights under local insurance regulations.

find out more

Third Party Pledge Agreement

A South African law-governed agreement where a third party pledges assets as security for another party's obligations.

find out more

Commercial Security Agreement

A South African law-governed agreement creating security interests over assets to secure commercial obligations, compliant with local security and property law requirements.

find out more

Collateral Security Agreement

A South African law-governed agreement creating security interests over assets to secure specified obligations, establishing rights and enforcement mechanisms for secured parties.

find out more

Stock Issuance Agreement

A South African law-governed agreement detailing the terms and conditions for issuing new company shares to subscribers, including share details, price, and party obligations.

find out more

Share Security Agreement

A South African law-governed agreement creating security over shares, establishing rights and enforcement mechanisms for the security provider and recipient.

find out more

Promissory Note And Security Agreement

A South African law-governed document combining a promise to pay with security arrangements, establishing both debt obligations and collateral rights.

find out more

Collateral Access Agreement

A South African law-governed agreement establishing rights and procedures for accessing and controlling collateral held by a security agent.

find out more

Convertible Note Agreement

A South African law-governed agreement for convertible debt investment that can transform into equity shares under specified conditions.

find out more

Property Collateral Agreement

A South African law-governed agreement creating security interests over property assets as collateral for financial obligations.

find out more

Pledge And Security Agreement

A South African law-governed agreement creating a security interest in specified assets to secure the performance of obligations, detailing pledge arrangements and enforcement rights.

find out more

Master Repurchase Agreement

A South African law-governed master agreement establishing terms for repurchase transactions between parties, including pricing, margin requirements, and risk management procedures.

find out more

Cross Collateral Agreement

A South African law-governed agreement establishing cross-collateralization of multiple assets as security for various credit facilities.

find out more

Asset Pledge Agreement

A South African law-governed agreement establishing a pledge over assets as security for obligations, compliant with local security and property law requirements.

find out more

Intercreditor Agreement

A South African law-governed agreement establishing priorities and relationships between multiple creditors in a financing arrangement.

find out more
See more related templates

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it