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Master Netting Agreement Template for Australia

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Key Requirements PROMPT example:

Master Netting Agreement

"I need a Master Netting Agreement under Australian law for a major bank with multiple subsidiaries, including provisions for cross-border transactions and automated electronic trading platforms, to be implemented by March 2025."

Document background
The Master Netting Agreement is essential for parties engaging in multiple financial transactions in the Australian market who seek to manage their counterparty credit risk effectively. This agreement provides a legal framework for netting various financial obligations, reducing credit exposure and operational risk while ensuring compliance with Australian regulations, particularly the Payment Systems and Netting Act 1998. It is typically used by financial institutions, corporations, and other market participants who maintain ongoing trading relationships and require a robust legal structure for their financial dealings. The agreement covers various types of financial transactions, including derivatives, securities lending, and repurchase agreements, and includes provisions for both payment netting during normal business operations and close-out netting in default scenarios.
Suggested Sections

1. Parties: Identification of the contracting parties and their legal status

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Comprehensive definitions of terms used throughout the agreement

4. Scope of Agreement: Specification of covered transactions and their treatment under the netting arrangement

5. Netting Provisions: Core provisions detailing payment netting, close-out netting, and settlement netting mechanisms

6. Events of Default: Definition of events triggering close-out netting rights

7. Close-out and Early Termination: Procedures for early termination and calculation of close-out amounts

8. Set-off Rights: Rights of parties to set off obligations against each other

9. Representations and Warranties: Standard legal representations and warranties from each party

10. Covenants: Ongoing obligations of the parties

11. Security and Credit Support: Requirements for collateral or other credit support arrangements

12. Dispute Resolution: Procedures for resolving disputes between parties

13. Governing Law and Jurisdiction: Specification of Australian law as governing law and jurisdiction provisions

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignments

Optional Sections

1. Multi-branch Provisions: Additional provisions for parties operating through multiple branches or offices

2. Tax Provisions: Specific tax-related provisions where parties have special tax considerations

3. Electronic Trading Provisions: Provisions for electronic execution of transactions where relevant

4. Special Entity Provisions: Additional provisions for regulated entities or special status counterparties

5. Force Majeure: Provisions dealing with extraordinary events affecting performance

6. Additional Termination Events: Customized termination triggers based on specific party requirements

Suggested Schedules

1. Schedule 1 - Transaction Types: List and details of all transaction types covered by the agreement

2. Schedule 2 - Covered Entities: List of affiliated entities covered by the agreement for multi-entity groups

3. Schedule 3 - Calculation Methods: Detailed methodologies for calculating close-out amounts and valuations

4. Schedule 4 - Credit Support Terms: Specific terms relating to collateral and credit support arrangements

5. Schedule 5 - Local Law Provisions: Jurisdiction-specific provisions required under Australian law

6. Appendix A - Form of Notice: Standard forms for notices under the agreement

7. Appendix B - Form of Power of Attorney: Standard form of power of attorney if required

8. Appendix C - Confirmation Templates: Templates for transaction confirmations under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions























































Clauses








































Relevant Industries

Banking

Financial Services

Insurance

Investment Management

Superannuation

Corporate Treasury

Asset Management

Securities Trading

Commodities Trading

Government Finance

Relevant Teams

Legal

Treasury

Risk Management

Trading

Operations

Compliance

Finance

Credit Risk

Documentation

Deal Management

Relevant Roles

Chief Financial Officer

Treasury Manager

Legal Counsel

Risk Manager

Compliance Officer

Trading Manager

Operations Director

Credit Risk Officer

Financial Controller

Corporate Treasurer

Head of Legal

Senior Counsel

Head of Trading

Chief Risk Officer

Head of Operations

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

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