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Credit Support Agreement Template for Belgium

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Key Requirements PROMPT example:

Credit Support Agreement

"I need a Belgian law Credit Support Agreement between our bank and a hedge fund client, focusing on government bonds and cash as eligible collateral, with daily valuation requirements and a minimum transfer amount of 鈧500,000."

Document background
The Credit Support Agreement is essential for managing counterparty credit risk in financial transactions under Belgian law. It is typically used in conjunction with master trading agreements or other financial arrangements where parties need to secure their obligations through collateral. The document becomes particularly relevant when entities engage in derivatives trading, securities lending, or other financial transactions requiring credit risk mitigation. Belgian law provides a robust framework for such agreements through the Financial Collateral Law of 2004, which implements the EU Financial Collateral Directive. This jurisdiction offers strong creditor protections and clear rules for collateral enforcement, making it an attractive choice for financial institutions and corporations operating in the European market.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including their legal names, registration details, and addresses

2. Background: Context of the agreement, reference to any master agreement, and purpose of the credit support arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement, including financial and technical terms specific to credit support arrangements

4. Credit Support Obligations: Core obligations regarding the provision of credit support, including delivery amount, return amount, and timing

5. Valuation and Calculations: Methods for calculating exposure, valuation percentages, and determining credit support amounts

6. Transfer Timing and Conditions: Specific requirements and timeframes for transferring collateral and return of excess collateral

7. Custody Arrangements: Provisions regarding the holding and safekeeping of posted collateral

8. Rights and Remedies: Legal rights and remedies available to parties in case of default or dispute

9. Representations and Warranties: Standard and specific representations made by each party regarding their capacity and authority

10. Tax Provisions: Treatment of taxes related to collateral transfers and income

11. Termination Provisions: Circumstances and procedures for terminating the agreement

12. Governing Law and Jurisdiction: Specification of Belgian law as governing law and jurisdiction for disputes

Optional Sections

1. Eligible Credit Support: Detailed specifications of acceptable forms of collateral, used when parties want to limit or expand eligible collateral types

2. Independent Amount: Additional credit support requirements beyond exposure calculations, included when parties agree to additional buffer amounts

3. Substitute Credit Support: Provisions allowing for substitution of posted collateral, included when parties want flexibility in managing collateral

4. Special Provisions for Initial Margin: Specific requirements for initial margin if required under regulatory requirements

5. Dispute Resolution: Detailed procedures for resolving valuation or calculation disputes, included when parties want specific dispute mechanisms

6. Additional Termination Events: Specific additional circumstances that trigger termination, included based on party-specific requirements

7. Control Agreements: Provisions regarding third-party custodian arrangements, included when using third-party custody

Suggested Schedules

1. Schedule 1: Eligible Credit Support and Valuation Percentages: Detailed list of acceptable collateral types and their corresponding valuation percentages

2. Schedule 2: Valuation and Calculation Procedures: Specific procedures and methodologies for calculating exposure and collateral requirements

3. Schedule 3: Notice Details: Contact information and procedures for delivering notices under the agreement

4. Schedule 4: Transfer Timing Requirements: Detailed timing requirements for collateral transfers and returns

5. Appendix A: Form of Eligibility Notice: Standard form for notifying changes in eligible credit support

6. Appendix B: Form of Transfer Notice: Standard form for collateral transfer notifications

7. Appendix C: Custody Account Details: Specific account details and procedures for collateral custody arrangements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 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

Investment Management

Insurance

Securities Trading

Asset Management

Corporate Treasury

Pension Fund Management

Investment Banking

Commodities Trading

Relevant Teams

Legal

Treasury

Risk Management

Compliance

Trading Operations

Financial Operations

Credit Risk

Collateral Management

Securities Operations

Regulatory Affairs

Relevant Roles

Treasury Manager

Risk Management Officer

Legal Counsel

Compliance Officer

Financial Controller

Collateral Manager

Trading Operations Manager

Credit Risk Analyst

Securities Operations Manager

Financial Operations Director

Head of Trading

Chief Financial Officer

Legal Director

Regulatory Compliance Manager

Portfolio Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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