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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."
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.
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
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
Banking
Financial Services
Infrastructure
Real Estate
Energy
Mining
Manufacturing
Telecommunications
Aviation
Maritime
Oil and Gas
Construction
Agriculture
Power Generation
Legal
Finance
Treasury
Compliance
Risk Management
Corporate Secretariat
Credit
Investment
Project Finance
Syndications
Security Administration
Transaction Management
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
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