Account – a record of a business transaction. If you buy something on credit, the company you`re dealing with creates an account. This means that it establishes a record of what you buy and what you pay for. You will do the same with all the customers you… financial and commercial terms (a) enter into a written security agreement executed by the mortgaged pledgor of the title account; and (b) to obtain a tripartite written control agreement signed by the Pledgor, the broker and the lender containing an appropriate “control language” (see below). Another method of “control” is to securitize the title account on behalf of the lender (which other method may be problematic and not fall within the scope of this article). The Account Control Agreement — an agreement that enhances a creditor`s interest in a title account, while allowing the registration of securities on behalf of the owner. An account control agreement is used to establish a security interest that… Financial and Commercial Terms The underlying title account control agreements are of all shapes and sizes, and it is necessary to have a fundamental understanding of what you need to pay attention to when reviewing these agreements. These agreements are generally between the owner/pledgor (“Pledgor”) of the Securities Account, the securities intermediary (i.e.dem broker or bank in which the securities account is held, the “broker”) and the lender (“Lender”).
There are a large number of business risks arising from some of the existing sector control agreements, and as title accounts are increasingly part of collateral for commercial loans, we felt that this was a dignified issue for bank loan managers and employees. The debtor will provide the secured party with a contract to control the deposit account, duly executed on behalf of any financial institution with a deposit account of the debtor, as defined in this guarantee agreement. U.S. Title Account An account on which a financial asset is credited or can be credited, pursuant to an agreement under which the financial institution that manages the account undertakes to consider as legitimate the person for whom the account is held… Legal Dictionary We are pleased to welcome lawyer Bennett Cohen from the law firm of Cohen, Salk and Huvard, P.C. as a guest blogger! In the coming weeks, Mr. Cohen will share his expertise on the control agreements for mortgaged title accounts. Collateral documents — Also known as security documents. Loan documents in a secured loan transaction that insure the borrower`s obligations to the lender under the loan agreement. Accompanying documents include all documents that have an interest in security…… Law Dictionary Be sure to check next week that Mr. Cohen continues to dive into the mortgaged title account control agreements.
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