A foreign subsidiary pledge agreement is one in which an owning company provides the pledge of securities of its foreign subsidiary in order to obtain a loan from a financial institution. The owner company has a stake in the foreign subsidiary company and is permitted to pledge the assets of the foreign subsidiary as its own to obtain a loan. The agreement provides for all the terms and conditions between both the parties to the pledge.
The terms and conditions of the pledge have to be agreed upon by the owning company which is the pledgor in this agreement by signing it along with date. Some of the points included in this agreement are name of the pledgor, name of the pledgee, name of foreign subsidiary, address of the pledgor, address of the pledgee, address of foreign subsidiary, date of pledge, amount of securities of foreign subsidiary pledged, maturity date of loan, value of securities pledged etc.
[Also Read: Foreign Pledge Agreement]
Sample for Foreign Subsidiary Pledge Agreement
A sample of the agreement can be downloaded from below.
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