Cash Pooling Agreement Sec

In the case of effective or physical cash pooling, the assets of each participating company are transferred to a „master account“. This account is usually managed by a holding company. If a company needs cash in the cash pool, it can receive it from the main account. The balance on the main account is usually covered by credits. In the event of a claim against the cash pool, the holding company is liable. While the group`s resources are offset by the resources made available by the Bank (for example. B to determine the applicable interest rate), the information is such that there is no offsetting of the bank`s funds with the funds of the group companies. In other words, since only funds lent by the Bank fall within the scope, the calculation of unused credit lines promised by banks is not affected by the amount of funds made available by participants in the cash pool. However, all funds of the companies in the group constitute guarantees (i.e. . B cash guarantees) and must be reported to AnaCredit to protect the funds made available to the Group by the Bank. This is consistent with the requirement that AnaCredit`s protection is separate from instruments.

When companies in a group invest in a cash pool, they collect their bank accounts and have them managed through a master account. Liquidity is thus pooled, allowing the companies concerned to make significant use of capital raising and capital investments. Cash pooling is possible both at the national level with subsidiaries within a country and across borders. Cash pooling is a technique used to clear funds within a group of companies. The main advantage of this system is to centralize cash in order to get better interest rates. Since pooling is carried out by the bank by creating a fictitious base account that will virtually consolidate the positions of the pool participants, but does not itself constitute a resource or obligation of the bank, the high-end fictitious account will not be subject to AnaCredit`s reporting. The following guidelines are applied by banks that provide an anaCredit report depending on the nature of the specific cash pool case. In the case of hybrid cash pooling, the actors involved combine efficient and virtual cash pooling. This method is used mainly when different currencies are used in the cash pool. Thus, the clearing of the respective bank balances is only carried out in euros and physically, while the original accounts in other currencies are only managed as part of virtual cash pooling.

Cash pooling is always subject to a corresponding contract between the participating companies. It contains the conditions under which company balances are deducted from the main account. . . .