Custodial Account Control Agreement

The CBA is a welcome initiative. It allows the parties to draw their attention to the main points of negotiation and identifies some possible solutions to the difficulties faced by the parties when they reach a satisfactory conclusion during these negotiations. This alert message addresses some of the key issues that parties should consider before using the CBA or any other account control agreement. THE ISDA ACA facilitates the process of negotiating contractual agreements providing for the separation of independent amounts (AA) with a third-party custodian. Like other three-party audit agreements, the ISDA ACA is a three-way contract between the custodian bank and two over-the-counter (OTC) derivative counterparties and provides that the IA deposit bank holds and releases the counterparties on the basis of predefined conditions. International Swaps and Derivatives Association, Inc. (ISDA) published its Account Control Agreement (ACA) in 2013. The ACA was developed by a working group composed of sales banks, sell-side banks and depot banks and aims to offer market participants a framework agreement for the documentation of their provisions on the separation of independent amounts related to unsetted derivatives transactions. (c) whether the uneducated party has a right of dispute with respect to a notice of exclusive control or a communication from the other party concerning access; Even in these dark days, the administrator will be reluctant to do something and may ask for compensation. Why would you compensate the depositary for the acts it takes under an account control agreement? The ISDA ACA has a similar structure to the ISDA Master Agreement.

It aims to streamline negotiations on the retention of freedom by three parties by proposing a standard agreement with an accompanying annex containing the proposed optional provisions, which can be adapted as needed. If you would like to discuss the ACA or other account control agreement, please contact a member of Fieldfisher`s Derivatives and Structured Finance group. (a) whether a notification of sole control or a notification of access to a pfpfänder can be made in a single step in respect of the entire pool of collateral or if, initially, the initiating party can only access the amount which it considers is likely to be necessary; Like much of the DOCUMENTATION on ISDA derivatives, the CBA is a framework agreement that allows the parties to specify in an annex the terms they have agreed bilaterally. . . .

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