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Security Trust Agreement Template for Nigeria

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Key Requirements PROMPT example:

Security Trust Agreement

"I need a Security Trust Agreement under Nigerian law for a syndicated loan facility closing March 2025, where Standard Trust Bank will act as security trustee for a group of 5 lenders in relation to security over oil & gas assets."

Document background
The Security Trust Agreement is a critical document in Nigerian secured financing transactions where multiple creditors are involved. It is commonly used in syndicated lending, project finance, and corporate borrowing arrangements where security interests need to be managed efficiently by a single entity. The agreement establishes a trust structure compliant with Nigerian law, particularly the Securities and Exchange Commission Act 2007 and the Investments and Securities Act 2007, allowing a security trustee to hold and manage security interests on behalf of various beneficiaries. This arrangement simplifies the administration of security interests, facilitates changes in the underlying creditor group without requiring new security registrations, and provides a clear framework for enforcement actions. The document is particularly important given Nigeria's complex security registration requirements and the need for coordinated enforcement actions in default scenarios.
Suggested Sections

1. Parties: Identifies the security trustee, the security provider(s), and any other relevant parties to the agreement

2. Background: Sets out the context of the security arrangement and the purpose of the trust

3. Definitions and Interpretation: Defines key terms used in the agreement and establishes interpretation principles

4. Appointment of Security Trustee: Formal appointment and acceptance of the security trustee role

5. Declaration of Trust: Establishes the trust arrangement over the secured assets

6. Security Trustee's Powers and Duties: Details the scope of the trustee's authority and responsibilities

7. Security Provider's Covenants: Obligations and undertakings of the security provider

8. Secured Assets: Description and details of the assets subject to the security arrangement

9. Enforcement of Security: Circumstances and procedures for enforcing the security

10. Application of Proceeds: Order of priority for distributing proceeds from enforcement

11. Trustee Remuneration and Indemnity: Provisions for trustee compensation and protection

12. Termination and Replacement: Circumstances and process for ending or changing the trust arrangement

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Confirms Nigerian law as governing law and jurisdiction for disputes

15. Miscellaneous: Standard boilerplate provisions including severability, amendments, etc.

Optional Sections

1. Parallel Debt: Required when dealing with multiple jurisdictions or certain types of security interests that need a direct obligation to the security trustee

2. Security Agent Provisions: Added when the trustee also acts as security agent in international transactions

3. Currency Conversion: Needed when secured obligations involve multiple currencies

4. Intercreditor Provisions: Required when there are multiple classes of creditors with different priorities

5. Tax Provisions: Detailed tax provisions when the security arrangement has significant tax implications

6. Further Assurance: Additional provisions for complex security arrangements requiring subsequent documentation or perfection steps

Suggested Schedules

1. Schedule 1 - Secured Assets: Detailed description and/or list of all assets subject to the security

2. Schedule 2 - Security Documents: List of all related security documents covered by the trust arrangement

3. Schedule 3 - Forms of Accession: Standard forms for new parties to accede to the agreement

4. Schedule 4 - Forms of Transfer: Standard forms for transferring rights and obligations under the agreement

5. Schedule 5 - Notice Details: Contact details and notice requirements for all parties

6. Schedule 6 - Security Trust Fee Schedule: Detailed breakdown of trustee fees and payment arrangements

7. Appendix A - Power of Attorney: Form of power of attorney granted to the security trustee

8. Appendix B - Enforcement Procedures: Detailed procedures for security enforcement under Nigerian law

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

Banking

Financial Services

Infrastructure

Real Estate

Energy

Mining

Manufacturing

Telecommunications

Aviation

Maritime

Oil and Gas

Construction

Agriculture

Power Generation

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Secretariat

Credit

Investment

Project Finance

Syndications

Security Administration

Transaction Management

Relevant Roles

Legal Counsel

Finance Director

Chief Financial Officer

Treasury Manager

Security Trustee Officer

Compliance Officer

Risk Manager

Corporate Secretary

Transaction Manager

Credit Risk Officer

Loan Officer

Investment Manager

Project Finance Manager

Syndications Manager

General Counsel

Banking Relationship Manager

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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