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The Collateral Account Control Agreement (CACA) is a fundamental document in secured financing transactions under Hong Kong law, used when a lender requires security over a bank account. This agreement is typically employed in project finance, acquisition finance, and other structured lending arrangements where cash collateral forms part of the security package. It creates a perfected security interest by establishing control over the account, addressing the requirements of Hong Kong security and banking regulations. The agreement details the mechanisms for account operation during normal conditions and the process for the secured party to take exclusive control upon specified events of default. It includes provisions for notices, authorizations, bank's rights and obligations, and operational procedures. The document is particularly important in Hong Kong's financial center context, where complex secured lending transactions frequently require robust account control mechanisms.

1. Parties: Identifies the three main parties: Account Holder, Secured Party, and Deposit Bank

2. Background: Explains the context of the security arrangement and the purpose of the agreement

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles

4. Appointment and Status of Deposit Bank: Establishes the role and authority of the deposit bank

5. Security Interest and Control: Details the security interest granted and control arrangements over the account

6. Operation of the Account: Specifies how the account will be operated and who has authority to give instructions

7. Instructions and Notifications: Sets out procedures for giving instructions and notifications between parties

8. Deposit Bank's Rights and Obligations: Details the rights, obligations, and protections of the deposit bank

9. Representations and Warranties: Contains standard representations and warranties from all parties

10. Fees and Expenses: Addresses the deposit bank's fees and expense reimbursement

11. Indemnification: Contains indemnification provisions protecting the deposit bank

12. Term and Termination: Specifies the duration and termination procedures

13. Miscellaneous: Contains standard boilerplate provisions

14. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and jurisdiction for disputes