A collateral management agreement is made between the borrower, the collateral manager and a credit institution where the borrower gets a loan using physical commodities as collateral and the collateral manager acts as the guardian of the commodities till he can meet the requirements of the bank.
Sample Collateral Management Agreement
This collateral management agreement is made between the ISSUER and the COLLATERAL MANAGER on the effective date of July 31, 2011 in Ohio.
Name: Smith and Sons Co
Address: 82 Richardson Lane, Chicago
Contact number: 384932892
COLLATERAL MANAGER DETAILS:
Name: New Finance Co
Address: 92 Morrison Road, Chicago
Contact number: 349823948
Kiline Group of Motels
28 Garisson Road, Chicago
DURATION OF AGREEMENT: 2 years
TERMS AND CONDITIONS:
As per the agreement, the ISSUER intends to issue an amount of $200,000 Class A1A First Priority Senior Secured Floating Rate notes to the BORROWER.
The ISSUER shall appoint the COLLATERAL MANAGER to perform certain duties with respect to the Collateral securing the Secured Obligations
The COLLATERAL MANAGER shall agrees to follow the terms and conditions of the ISSUER and supervise the administration of the COLLATERAL
The COLLATERAL MANAGER shall also perform the all the responsibilities assigned to it as COLLATERAL MANAGER on behalf of the ISSUER
The COLLATERAL MANAGER has the right to deliver issue orders, issuer requests and so on and has the power to execute other important documents on behalf of the ISSUER
Changes to this agreement can be made only with the consent of both parties.