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Account control agreement: Difference between revisions
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also known as a [[tri-party collateral arrangement]]; an arrangement wherein a debtor [[pledge]]s collateral to a [[custodian]] to hold it for that [[pledgor]], but subject to a security in favour of a [[pledgee]]. The agreement generally provides that neither party may instruct the custodian to do anything with the asset without the other's consent, except in the direst of circumstances. | also known as a [[tri-party collateral arrangement]]; an arrangement wherein a debtor [[pledge]]s collateral to a [[custodian]] to hold it for that [[pledgor]], but subject to a security in favour of a [[pledgee]]. The agreement generally provides that neither party may instruct the custodian to do anything with the asset without the other's consent, except in the direst of circumstances. | ||
===[[Indemnity]] | |||
===[[Indemnity]]=== | |||
Even in those dark days the custodian will be reluctant to do anything and may ask for an indemnity. Why would you indemnify the [[Custodian]] for actions it takes under an [[account control agreement]]? | Even in those dark days the custodian will be reluctant to do anything and may ask for an indemnity. Why would you indemnify the [[Custodian]] for actions it takes under an [[account control agreement]]? | ||