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Third Party Security Agreement
"I need a Third Party Security Agreement under Malaysian law where my holding company will provide security over its commercial property to secure a RM10 million facility that my operating company is obtaining from ABC Bank in March 2025."
1. Parties: Identifies and defines all parties: the Security Provider (third party), the Debtor (principal debtor), and the Secured Party (creditor)
2. Background: Explains the context of the security arrangement, including reference to the principal debt/facility agreement and the relationship between parties
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles
4. Security Interest Creation: Core provisions creating and establishing the security interest over the specified assets
5. Representations and Warranties: Standard and security-specific representations and warranties by the Security Provider
6. Covenants: Positive and negative obligations of the Security Provider regarding the secured assets
7. Enforcement: Rights and powers of the Secured Party upon enforcement, including appointment of receivers
8. Power of Attorney: Appointment of the Secured Party as attorney for specific security-related purposes
9. Payments and Application: Provisions regarding payments, application of proceeds, and currency provisions
10. General Provisions: Standard boilerplate clauses including notices, assignments, amendments, and governing law
1. Further Security: Additional security arrangements that may be required for specific assets or jurisdictions
2. Insurance: Specific insurance requirements for secured assets, included when physical assets are part of security
3. Security Margin: Provisions for maintaining specific security value ratios, used for fluctuating value assets
4. Cross-Default: Provisions linking defaults under other agreements, used in complex security structures
5. Currency Protection: Special provisions for cross-border transactions or multiple currency facilities
6. Tax Provisions: Detailed tax-related provisions when security arrangement has significant tax implications
1. Schedule 1 - Secured Assets: Detailed description and/or list of assets subject to the security interest
2. Schedule 2 - Secured Obligations: Description of the obligations being secured, including reference to facility agreements
3. Schedule 3 - Form of Notice: Standard form notices required for perfection of security (if applicable)
4. Schedule 4 - Powers of Receiver: Detailed list of receiver's powers upon enforcement
5. Schedule 5 - Security Provider Details: Detailed information about the Security Provider including asset ownership details
6. Appendix A - Required Filings: List of necessary registrations and filings for security perfection
Authors
Banking & Financial Services
Corporate Finance
Real Estate
Manufacturing
Trading & Commerce
Construction
Infrastructure
Agriculture
Technology
Energy
Legal
Finance
Compliance
Risk Management
Corporate Secretarial
Credit Administration
Treasury
Corporate Banking
Security Documentation
Business Development
Legal Counsel
Corporate Lawyer
Finance Manager
Credit Risk Manager
Compliance Officer
Security Documentation Officer
Corporate Secretary
Relationship Manager
Credit Officer
Treasury Manager
Chief Financial Officer
Risk Officer
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