Document background
The Security Trust Agreement is a crucial document in secured financing transactions under Hong Kong law, particularly in syndicated lending, bond issuances, and other multi-creditor arrangements. It is used when security needs to be held for the benefit of multiple parties or where the secured parties may change over time. The agreement creates a trust structure whereby a professional trustee holds security interests over various assets on behalf of beneficiaries (typically lenders or bondholders). This arrangement simplifies security administration, avoids the need for multiple security registrations, and provides a clear framework for decision-making and enforcement. The document must comply with Hong Kong's Trustee Ordinance and Securities and Futures Ordinance, while also addressing practical commercial requirements.
