Document background
The Bank Account Pledge Agreement is a fundamental security document used in Belgian financing transactions where cash collateral is required as security for financial obligations. This document type is commonly used in corporate lending, project finance, and other secured financing arrangements where a lender requires control over a borrower's cash deposits. The agreement must comply with the Belgian Pledge Act of 2013 and the Belgian Financial Collateral Law, which implement European financial collateral regulations. It establishes the pledge over specified bank accounts, details the rights and obligations of the pledgor and pledgee, sets out account operating procedures, and specifies enforcement mechanisms. The document is typically part of a broader security package and requires registration in the National Pledge Register to ensure third-party effectiveness. It's particularly relevant in scenarios where ongoing cash management and control are critical to the security arrangement.
