Cash Pooling Agreement Template

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Cash Pooling Agreement Template

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Cash Pooling Agreement Template (1)
Between:
[Name of the Cash Pooling Manager]
[Manager’s ID]
[Manager’s Address]
[Manager’s Phone]
[Manager’s Email]
And:
[Name of the Participating Company]
[Company’s ID]
[Company’s Address]
Introduction:
This Cash Pooling Agreement is made to establish a cash pooling structure enabling the sharing of liquidity among participants, effective from [Effective Date].
Clause 1: Purpose of Cash Pooling
The purpose of this agreement is to consolidate the cash resources of the participating companies to minimize external borrowing and maximize interest income.
Clause 2: Participation
The Participating Company agrees to participate in the cash pooling arrangement and contribute its account balances to the Pool.
Clause 3: Cash Pooling Mechanism
The Cash Pooling Manager will transfer funds among account balances to ensure liquidity and optimize the utilization of cash resources as follows: [Specify detailed mechanisms].
Clause 4: Interest Allocation
Interest earned on the pooled funds will be allocated among participating companies based on their contributions, as defined in the supplementary schedule attached.
Clause 5: Fees
The Manager may charge fees for administering the cash pool, which will be communicated to all participants and deducted from the interest allocated.
Clause 6: Term and Termination
This agreement will remain in effect until terminated by either party with [Specify notice period] written notice, or under conditions specified herein.
Clause 7: Governing Law
This agreement shall be governed by the laws of [Jurisdiction].
Signed in [City], [Date].
Sincerely,
[Signature of the Cash Pooling Manager]
[Name of the Cash Pooling Manager]
[Signature of the Participating Company]
[Name of the Authorized Representative]
Cash Pooling Agreement Template (2)
Between:
[Name of the Cash Pooling Coordinator]
[Coordinator’s ID]
[Coordinator’s Address]
[Coordinator’s Phone]
[Coordinator’s Email]
And:
[Name of the Subsidiary Company]
[Subsidiary’s ID]
[Subsidiary’s Address]
Introduction:
This agreement sets forth the terms and conditions for the cash pooling arrangement, effective from [Effective Date], to facilitate efficient cash management among the companies involved.
Clause 1: Definition of Cash Pooling
Cash pooling refers to a financial arrangement in which a group of companies combines their cash balances to have a single net balance, allowing greater control and economic benefit.
Clause 2: Contributions to the Pool
Each company shall contribute its available cash balances to the Pool, as determined on a daily basis and communicated by the Coordinator.
Clause 3: Rebalancing
The Coordinator shall perform daily rebalancing of the cash pool accounts to ensure that each participant’s liquidity needs are met while optimizing the utilization of available funds.
Clause 4: Interest Calculation and Distribution
Interest shall be calculated based on daily balances and distributed to participants at the end of each month. The formula will be outlined in an annex to this agreement.
Clause 5: Responsibilities of the Parties
Each party agrees to communicate promptly regarding significant financial changes that could affect cash availability within the pool.
Clause 6: Modifications and Amendments
Any amendments to this agreement must be made in writing and signed by all parties involved.
Clause 7: Governing Law
This agreement will be governed by the laws of [Jurisdiction].
Signed in [City], [Date].
Sincerely,
[Signature of the Cash Pooling Coordinator]
[Name of the Cash Pooling Coordinator]
[Signature of the Subsidiary Company]
[Name of the Authorized Representative]

Form

Please complete the form below to create the Cash Pooling Agreement Template. All fields must be filled out to ensure a clear and complete agreement. We provide examples to guide you through each step.

Cash Pooling Agreement Template

1. Participating Entities




2. Agreement Overview

3. Purpose of Cash Pooling

4. Cash Pool Structure

5. Contributions to the Cash Pool

6. Interest Allocation

7. Fees and Charges

8. Reporting and Reconciliation

9. Governing Law

10. Termination Clauses

11. Signatures and Acceptance

12. Declaration and Signatures




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Cash Pooling Agreement Template

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Cash Pooling Agreement Template