Collateral Management Agreement


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.

ISSUER DETAILS:

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

BORROWER DETAILS:

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.

SIGNATURES:

ISSUER

COLLATERAL MANAGER

Category: Management Agreements

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