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Collateral Management Agreement
"I need a Collateral Management Agreement for a Saudi Arabian bank acting as collateral manager for international commodity trading transactions, with specific provisions for physical commodity collateral and Sharia-compliant monitoring procedures, to be implemented by March 2025."
1. Parties: Identification of the contracting parties including the collateral provider, collateral taker, and collateral manager
2. Background: Context of the agreement and relationship between the parties
3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including Sharia-compliant terminology
4. Appointment and Authority: Appointment of collateral manager and scope of authority
5. Eligible Collateral: Types of acceptable collateral and eligibility criteria
6. Delivery and Custody of Collateral: Procedures for delivering, holding, and safeguarding collateral
7. Valuation and Margin: Methods for valuing collateral and maintaining margin requirements
8. Rights and Obligations: Detailed responsibilities of each party
9. Fees and Expenses: Payment terms for collateral management services
10. Representations and Warranties: Standard and Sharia-specific representations by all parties
11. Events of Default: Circumstances constituting default and consequences
12. Enforcement Rights: Procedures for enforcing rights over collateral
13. Term and Termination: Duration of agreement and termination provisions
14. Governing Law and Jurisdiction: Confirmation of Saudi law governance and jurisdiction
15. Notices: Communication procedures between parties
16. General Provisions: Standard boilerplate clauses adapted for Saudi law
1. Sharia Compliance: Specific section detailing Sharia compliance requirements - required when parties specifically want to emphasize Sharia compliance
2. Sub-Custodian Arrangements: Details of sub-custodian appointments and responsibilities - needed when sub-custodians will be used
3. Insurance: Insurance requirements for collateral - relevant for physical collateral
4. Tax Provisions: Specific tax-related provisions - needed for international arrangements or complex tax situations
5. Electronic Systems: Provisions for electronic collateral management systems - needed when using digital platforms
6. Regulatory Compliance: Additional regulatory requirements - needed for regulated entities or cross-border arrangements
1. Schedule 1 - Eligible Collateral List: Detailed list of acceptable collateral types and specific eligibility criteria
2. Schedule 2 - Valuation Procedures: Detailed methodology for valuing different types of collateral
3. Schedule 3 - Fee Schedule: Detailed breakdown of fees and payment terms
4. Schedule 4 - Operating Procedures: Detailed operational procedures for collateral management
5. Schedule 5 - Form of Notices: Standard forms for various notices under the agreement
6. Schedule 6 - Authorized Signatories: List of authorized representatives for each party
7. Appendix A - Required Documentation: List of required documents for collateral posting
8. Appendix B - Reporting Requirements: Templates and requirements for regular reporting
Authors
Banking
Financial Services
Islamic Finance
Investment Management
Securities Trading
Asset Management
Corporate Banking
Trading
Commodities
Investment Banking
Insurance
Real Estate
Legal
Compliance
Treasury
Risk Management
Operations
Finance
Credit
Trading
Investment Management
Islamic Banking
Securities Operations
Custody Operations
Chief Financial Officer
Treasury Manager
Collateral Manager
Risk Manager
Legal Counsel
Compliance Officer
Securities Operations Manager
Credit Risk Officer
Investment Manager
Portfolio Manager
Custody Operations Manager
Islamic Finance Specialist
Financial Controller
Head of Trading
Senior Banking Executive
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