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Pledged Collateral Account Control Agreement for the United States

Pledged Collateral Account Control Agreement Template for United States

A Pledged Collateral Account Control Agreement is a tri-party agreement used in the United States to establish control over a deposit account or securities account pledged as collateral. The agreement creates and perfects a security interest under UCC Article 9, enabling the secured party to exercise control over the account while defining the rights and obligations of all parties involved, including the account bank's acknowledgment of the arrangement.

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Pledged Collateral Account Control Agreement

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What is a Pledged Collateral Account Control Agreement?

The Pledged Collateral Account Control Agreement is essential in secured financing transactions where accounts serve as collateral. It complies with UCC Article 9 requirements for perfecting security interests in deposit and securities accounts. This agreement is commonly used in the United States when a borrower pledges an account as security for a loan, establishing the lender's control rights while maintaining the account bank's operational requirements. It defines notification procedures, instruction rights, and the account bank's obligations, ensuring all parties understand their roles in the control arrangement.

What sections should be included in a Pledged Collateral Account Control Agreement?

1. Parties: Identifies the secured party, debtor, and account bank/securities intermediary

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

3. Definitions: Key terms including Collateral Account, Security Interest, Control, Instructions

4. Account Control: Provisions establishing control over the account and instruction rights

5. Security Interest: Acknowledgment of security interest and perfection

6. Account Bank's Rights and Responsibilities: Obligations and limitations of liability for the account bank

What sections are optional to include in a Pledged Collateral Account Control Agreement?

1. Investment and Trading Authority: Used when account contains securities or investment property - applicable for securities accounts or investment management arrangements

2. Foreign Currency Provisions: Handling of non-USD currencies in the account - applicable when account may contain foreign currencies

3. Electronic Communications: Procedures for electronic instructions and notices - applicable when parties agree to electronic communications

What schedules should be included in a Pledged Collateral Account Control Agreement?

1. Account Details Schedule: Lists all controlled accounts and account numbers

2. Authorized Persons Schedule: Lists individuals authorized to give instructions

3. Form of Notice of Exclusive Control: Template for secured party to exercise exclusive control

4. Fee Schedule: Account bank's fees for maintaining the controlled account

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

Jurisdiction

United States

Document Type

Security Agreement

Cost

Free to use
Clauses




























Industries

Uniform Commercial Code (UCC): Primary focus on Articles 8 (Investment Securities) and 9 (Secured Transactions). Key sections include UCC 锟斤拷 9-104 for control of deposit accounts, and UCC 锟斤拷 9-312 and 锟斤拷 9-314 for perfection of security interests

Federal Securities Laws: Including Securities Act of 1933, Securities Exchange Act of 1934, and Investment Company Act of 1940. These laws govern securities transactions and related financial instruments

Banking Regulations: Encompasses Federal Reserve Regulations, Bank Secrecy Act, USA PATRIOT Act requirements, and FDIC regulations governing banking operations and account management

State-Specific Laws: Including state banking regulations, state securities regulations, and state-specific UCC adoptions and modifications that may affect the agreement's implementation

Bankruptcy Code: Covers automatic stay provisions, perfection requirements, and treatment of secured claims in bankruptcy scenarios

Federal Reserve Board Regulations: Specifically Regulation CC (Availability of Funds) and Regulation D (Reserve Requirements) affecting account operations

Consumer Protection Laws: Including CFPB regulations, Truth in Lending Act, and Electronic Funds Transfer Act, particularly relevant if consumer accounts are involved

Anti-Money Laundering Requirements: Encompasses Know Your Customer (KYC) rules and Suspicious Activity Reporting requirements for financial institutions

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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