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Guarantee And Collateral Agreement Template for Australia

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Key Requirements PROMPT example:

Guarantee And Collateral Agreement

"I need a Guarantee and Collateral Agreement for a mining equipment financing deal where our subsidiary company will guarantee a $50M facility and provide security over its equipment and receivables, with the agreement to be effective from March 2025."

Document background
The Guarantee and Collateral Agreement is a crucial document in Australian secured financing transactions, used when a party (guarantor) both guarantees the obligations of another party and provides security over assets to support that guarantee. This document is particularly important in corporate and commercial financing where additional security is required beyond the primary obligor's commitments. It must comply with the Personal Property Securities Act 2009 (Cth), Corporations Act 2001 (Cth), and other relevant Australian legislation. The agreement typically includes detailed provisions on the scope of guaranteed obligations, grant of security interests, representations and warranties, enforcement rights, and PPSA-specific requirements. It's commonly used in various financing structures including corporate loans, project finance, and structured finance transactions.
Suggested Sections

1. Parties: Identifies all parties to the agreement including guarantor(s), secured party/beneficiary, and principal debtor

2. Background: Sets out the context of the guarantee and security arrangement, including reference to the underlying facility or obligation being guaranteed

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Guarantee: Core guarantee provisions including scope of guaranteed obligations, nature of guarantee (continuing, unconditional), and payment obligations

5. Grant of Security Interest: Creates and establishes the security interest over the collateral

6. Secured Obligations: Defines the obligations secured by the collateral

7. Representations and Warranties: Statements of fact and assurances given by the guarantor regarding their capacity and the collateral

8. Undertakings: Ongoing obligations of the guarantor regarding maintenance and dealing with the collateral

9. Events of Default: Circumstances that trigger enforcement rights

10. Enforcement: Rights and remedies of the secured party upon default

11. Power of Attorney: Appointment of secured party as attorney for enforcement purposes

12. Protection of Secured Party: Provisions protecting the secured party's interests and limiting their liability

13. PPSA Provisions: Specific provisions required under the Personal Property Securities Act

14. Payments and Recovery: Procedures for payments and secured party's recovery rights

15. General Provisions: Standard boilerplate clauses including notices, governing law, and jurisdiction

Optional Sections

1. Multiple Guarantors: Additional provisions for when there are multiple guarantors, including joint and several liability

2. Specific Asset Provisions: Special provisions for particular types of collateral (e.g., real property, shares, intellectual property)

3. Foreign Currency Provisions: Required when guaranteed obligations or security involves multiple currencies

4. Independent Trustee Provisions: Additional provisions when a guarantor acts as trustee of a trust

5. Marshalling and Administration: Provisions dealing with multiple security interests and their priority

6. Contractual Subordination: Provisions dealing with priority of payments and subordination arrangements

7. Account Bank Provisions: Specific provisions for when security includes bank accounts

8. Insurance Requirements: Detailed insurance obligations when specific insurance is required for collateral

Suggested Schedules

1. Schedule 1 - Guarantor Details: Details of guarantor(s) including name, address, ACN/ABN, and contact information

2. Schedule 2 - Secured Obligations: Detailed description of the guaranteed and secured obligations

3. Schedule 3 - Collateral Description: Detailed description of all assets subject to the security interest

4. Schedule 4 - Specified Documents: List of principal documents relating to the secured obligations

5. Schedule 5 - Security Interest Perfection Requirements: Specific requirements for perfecting security interests in different types of collateral

6. Schedule 6 - Existing Security Interests: Details of any permitted existing security interests over the collateral

7. Appendix A - Notice and Acknowledgment Forms: Template forms for notifying third parties of the security interest

8. Appendix B - Security Interest Release Forms: Template forms for releasing security interests when obligations are discharged

Authors

Alex Denne

Head of Growth (Open Source Law) @ 红杏直播 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
















































Clauses






























Relevant Industries

Banking and Financial Services

Corporate Finance

Real Estate and Property

Manufacturing

Mining and Resources

Infrastructure

Agriculture

Retail and Commercial

Technology and Software

Professional Services

Relevant Teams

Legal

Finance

Risk Management

Treasury

Compliance

Credit

Commercial

Corporate Secretariat

Security Administration

Transaction Management

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Risk Manager

Credit Manager

Commercial Director

Corporate Treasurer

Security Trustee Officer

Compliance Officer

Transaction Manager

Banking Relationship Manager

Corporate Secretary

Financial Controller

Head of Credit

Senior Loan Officer

Industries








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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