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Second Trust Deed Template for Nigeria

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Key Requirements PROMPT example:

Second Trust Deed

"I need a Second Trust Deed for a commercial property in Lagos, Nigeria, to secure additional financing of ���50 million from ABC Bank, where the property already has a first trust deed with XYZ Bank; the loan term will start in March 2025 and needs to include specific provisions for commercial tenant operations."

Document background
A Second Trust Deed is utilized in Nigerian property transactions when a property owner seeks additional financing while already having an existing trust deed on the property. This document becomes necessary when property owners need to leverage their equity for additional capital while preserving the rights of the first trust deed holder. The Second Trust Deed must comply with Nigerian property law, including the Land Use Act and relevant state property laws, and requires careful structuring to ensure proper subordination to the first trust deed. It typically contains comprehensive details about the property, security amount, payment terms, and enforcement mechanisms. The document is particularly common in commercial real estate development, property refinancing, and business expansion scenarios where additional capital is needed against partially encumbered property.
Suggested Sections

1. Parties: Identifies all parties: Trustor/Grantor, Trustee, and Beneficiary (typically the second lender)

2. Background: Explains the context, including reference to the first trust deed and the reason for this second trust deed

3. Definitions: Defines key terms used throughout the deed, including property description, security amount, and relationship to first trust deed

4. Creation of Trust: Establishes the trust relationship and the conveyance of the security interest

5. Subordination Provisions: Explicitly acknowledges the priority of the first trust deed and defines the relationship between the two deeds

6. Property Description: Detailed legal description of the property subject to the trust deed

7. Security Amount: Specifies the amount secured by the second trust deed

8. Payment Terms: Details of payment obligations, including interest rates and payment schedule

9. Covenants: Grantor's promises regarding property maintenance, insurance, taxes, and other obligations

10. Default Provisions: Defines events of default and consequences

11. Remedies: Specifies remedies available to the beneficiary in case of default

12. Notice Requirements: Procedures for giving notice under the deed

13. Governing Law: Specifies Nigerian law as governing law and relevant jurisdiction

Optional Sections

1. Cross-Default Provisions: Optional section linking defaults under this deed with other financing agreements

2. Insurance Requirements: Detailed insurance requirements if not covered in main covenants

3. Environmental Provisions: Additional environmental warranties and covenants for commercial properties

4. Assignment and Transfer: Provisions regarding the ability to assign or transfer rights under the deed

5. Power of Attorney: Optional appointment of power of attorney for specific actions

6. Future Advance Provisions: If the deed will secure future advances or modifications

Suggested Schedules

1. Schedule 1 - Property Description: Detailed legal description of the property including surveys and plans

2. Schedule 2 - Payment Schedule: Detailed amortization schedule and payment terms

3. Schedule 3 - Permitted Encumbrances: List of approved existing encumbrances including first trust deed details

4. Schedule 4 - Insurance Requirements: Specific insurance requirements and minimum coverage amounts

5. Appendix A - Form of Notice: Standard forms for various notices required under the deed

6. Appendix B - Required Consents: Copies of any required consents, including from first trust deed holder

7. Appendix C - Property Documents: Copies of relevant property documents, certificates, and permits

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































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Relevant Industries

Real Estate

Banking & Financial Services

Construction & Development

Commercial Property

Residential Property

Agriculture (for farm properties)

Industrial & Manufacturing

Retail

Hospitality

Relevant Teams

Legal

Real Estate

Credit Risk

Compliance

Property Management

Commercial Banking

Mortgage Services

Title & Registration

Corporate Finance

Risk Management

Relevant Roles

Real Estate Attorney

Property Lawyer

Mortgage Officer

Trust Officer

Property Manager

Real Estate Developer

Commercial Banking Officer

Credit Risk Manager

Legal Counsel

Compliance Officer

Property Rights Registrar

Real Estate Investment Manager

Loan Officer

Title Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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