Securities Account Control Contract

A Securities Account Control Contract is a legal template that establishes an agreement between a Securities Intermediary (such as a bank or broker) and an Account Holder. The contract outlines the terms and conditions regarding the control of securities held in the account, providing clarity on the rights and roles of both parties.

The template typically includes provisions related to the scope of the account control, such as authorization, directions, and instructions concerning the securities held within the account. It may specify the conditions under which the Securities Intermediary may act upon the Account Holder's instructions or the circumstances where the Securities Intermediary has the right to refuse or delay executing certain requests.

Furthermore, the contract may outline the legal consequences and liabilities for both parties in case of unauthorized access, error, or fraudulent activity. It may define the Account Holder's responsibility to maintain accurate records, promptly reviewing account statements, and reporting any discrepancies to the Securities Intermediary.

The Securities Account Control Contract may also address the issue of custody, outlining how the Securities Intermediary will handle and protect the securities, including security measures and the use of designated subaccounts. Additionally, provisions relating to fees, expenses, and compensation for the Securities Intermediary's services may also be included.

Overall, this legal template plays a crucial role in establishing a clear framework for the control, management, and protection of securities held in an account, ensuring transparency, defined responsibilities, and appropriate legal recourse for both the Securities Intermediary and the Account Holder.