Isda 2013 Account Control Agreement

Posted by on Feb 25, 2022 in Uncategorized | No Comments

The ISDA 2013 Account Control Agreement: What You Need to Know

The ISDA 2013 Account Control Agreement (ACA) is a legal document that details the agreement between parties regarding the use and control of a deposit account. The agreement is typically used in financial transactions that involve the use of collateral, such as secured loans or derivatives contracts.

The ACA is designed to provide greater transparency and security in financial transactions by establishing clear guidelines for the use and control of deposit accounts. It is intended to minimize the risk of disputes and ensure that all parties involved in the transaction have a clear understanding of their roles and responsibilities.

The ACA establishes a tripartite relationship between the account holder, the secured party, and the bank that holds the deposit account. The agreement specifies the circumstances under which the secured party can exercise control over the deposit account, such as in the event of default by the account holder.

The ACA also provides guidelines for the release of funds from the deposit account. The agreement specifies the circumstances under which the bank can release funds to the secured party, and the procedures that must be followed in order to do so.

One of the key features of the ACA is its integration with the International Swaps and Derivatives Association (ISDA) Master Agreement. The ACA is designed to work in conjunction with the ISDA Master Agreement, which provides standardized terms for derivatives transactions.

The integration between the ACA and the ISDA Master Agreement helps to streamline the transaction process and minimize the risk of disputes between parties. Both documents establish clear guidelines for the use and control of deposit accounts, and provide a framework for resolving disputes that may arise during the course of the transaction.

In summary, the ISDA 2013 Account Control Agreement is a key legal document that helps to provide greater transparency and security in financial transactions involving the use of collateral. It establishes clear guidelines for the use and control of deposit accounts, and provides a framework for resolving disputes that may arise during the course of the transaction. Its integration with the ISDA Master Agreement helps to streamline the transaction process and minimize the risk of disputes between parties.