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Third Party Security Agreement
"I need a Third Party Security Agreement under Belgian law where our subsidiary company will provide security over its equipment and receivables to secure a 鈧5 million loan that our parent company is taking from Belgian Bank SA, with the security to be effective from March 1, 2025."
1. Parties: Identification of all parties: Security Provider (Third Party), Secured Party (Creditor), and Principal Debtor
2. Background: Context of the security arrangement, relationship between parties, and reference to principal debt obligation
3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including Belgian law-specific terminology
4. Creation of Security Interest: Express provision creating the security interest, specifying type and nature of security
5. Secured Obligations: Detailed description of the obligations being secured, including principal debt and ancillary obligations
6. Representations and Warranties: Standard representations by the Security Provider regarding authority, ownership, and absence of encumbrances
7. Covenants: Ongoing obligations of the Security Provider regarding the secured assets
8. Enforcement: Rights and procedures for enforcing the security interest under Belgian law
9. Power of Attorney: Appointment of the Secured Party as attorney for perfection and enforcement purposes
10. Notices: Process for giving notices between parties
11. Governing Law and Jurisdiction: Confirmation of Belgian law as governing law and jurisdiction of Belgian courts
1. Multiple Creditors: Required when there are multiple secured parties, defining ranking and relationship between them
2. Currency Provisions: Needed for cross-border transactions involving multiple currencies
3. Tax Gross-up: Include when tax implications need to be addressed explicitly
4. Further Assurance: Additional provisions for cooperation in perfecting security
5. Release Provisions: Detailed provisions on when and how security will be released
6. Costs and Expenses: Allocation of costs related to security creation and maintenance
7. Assignment and Transfer: Include if security or secured obligations may be transferred
8. Parallel Debt: Required in syndicated facilities or when using a security agent structure
1. Schedule 1 - Secured Assets: Detailed description and/or list of assets subject to security
2. Schedule 2 - Principal Debt Documents: List and details of underlying debt obligations being secured
3. Schedule 3 - Forms of Notice: Standard forms for notices to be given under the agreement
4. Schedule 4 - Security Provider Information: Detailed information about the Security Provider including corporate details
5. Schedule 5 - Perfection Requirements: List of actions required to perfect the security interest
6. Appendix A - Registration Forms: Forms required for registering the security interest with relevant Belgian authorities
7. Appendix B - Conditions Precedent: List of documents and conditions required before security becomes effective
Authors
Banking & Financial Services
Real Estate
Manufacturing
Retail
Infrastructure
Energy
Technology
Healthcare
Transportation & Logistics
Construction
Agriculture
Telecommunications
Legal
Finance
Treasury
Risk Management
Compliance
Corporate Secretariat
Credit
Securities Administration
Corporate Finance
Collateral Management
Legal Counsel
Finance Director
Corporate Lawyer
Security Trustee
Credit Risk Manager
Compliance Officer
Corporate Secretary
Treasury Manager
Chief Financial Officer
Banking Lawyer
Security Agent
Transaction Manager
Risk Officer
Legal Director
Finance Manager
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