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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."
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
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
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
Real Estate
Banking & Financial Services
Construction & Development
Commercial Property
Residential Property
Agriculture (for farm properties)
Industrial & Manufacturing
Retail
Hospitality
Legal
Real Estate
Credit Risk
Compliance
Property Management
Commercial Banking
Mortgage Services
Title & Registration
Corporate Finance
Risk Management
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
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