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Memorandum Of Deposit
"I need a Memorandum of Deposit to secure a NZD 2.5 million business loan from ABC Bank Limited, with the security being taken over our company's manufacturing equipment and inventory located in Auckland, New Zealand."
1. Parties: Identifies the parties to the agreement - typically the depositor (security provider) and the secured party
2. Background: Sets out the context of the security arrangement and references any related agreements such as facility agreements
3. Definitions and Interpretation: Defines key terms used in the document and establishes interpretation principles
4. Creation of Security Interest: Establishes the security interest over the deposited assets
5. Secured Obligations: Defines the obligations being secured by the security interest
6. Representations and Warranties: Depositor's confirmations about ownership, authority, and status of the secured assets
7. Depositor's Obligations: Ongoing obligations of the depositor regarding the secured assets
8. Rights and Powers of the Secured Party: Sets out what the secured party can do with or in relation to the secured assets
9. Enforcement: Specifies when and how the security interest can be enforced
10. Power of Attorney: Appointment of the secured party as attorney to perfect or enforce the security
11. General Provisions: Standard boilerplate provisions including notices, amendments, governing law
1. Further Assurance: Additional obligations to perfect the security - include when dealing with complex assets or overseas assets
2. Insurance: Requirements for insurance of secured assets - include when secured assets are physical property
3. Costs and Expenses: Allocation of costs - include when significant costs are anticipated
4. Assignment and Transfer: Rights to transfer the security interest - include for sophisticated financial transactions
5. Reinstatement and Release: Terms for releasing the security - include when partial releases may be required
6. Income and Interest: Treatment of income from secured assets - include for income-generating assets like shares
7. Priority Arrangements: Priority position of the security - include when there are multiple security interests
1. Schedule 1 - Secured Assets: Detailed description of the assets subject to the security interest
2. Schedule 2 - Secured Obligations: Detailed description of the secured obligations, including reference to facility agreements
3. Schedule 3 - Form of Notice: Template notices to perfect the security interest where required
4. Schedule 4 - Permitted Security Interests: List of existing or permitted security interests over the secured assets
5. Appendix 1 - Asset Documents: Copies of key documents evidencing ownership of secured assets
6. Appendix 2 - Registration Forms: Forms required for registering the security interest on the PPSR
Authors
Banking
Financial Services
Investment Management
Commercial Real Estate
Manufacturing
Agriculture
Mining and Resources
Infrastructure
Retail
Professional Services
Legal
Credit
Risk
Compliance
Banking Operations
Security Administration
Document Management
Portfolio Management
Transaction Management
Relationship Management
Legal Counsel
Banking Lawyer
Finance Lawyer
Commercial Lawyer
Credit Manager
Relationship Manager
Security Trustee
Loan Officer
Credit Analyst
Risk Manager
Compliance Officer
Document Controller
Transaction Manager
Portfolio Manager
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