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Security Trust Agreement Template for New Zealand

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Key Requirements PROMPT example:

Security Trust Agreement

"I need a Security Trust Agreement under New Zealand law for a syndicated loan facility closing in March 2025, where ABC Bank Limited will act as security trustee for a group of five domestic banks providing secured financing to a manufacturing company."

Document background
The Security Trust Agreement is essential in complex financing arrangements where security interests need to be held and managed for multiple beneficiaries. This document type is commonly used in New Zealand for syndicated lending, bond issuances, and other structured finance transactions where multiple creditors are involved. The agreement establishes the security trustee's role, powers, and responsibilities in holding and managing security interests on behalf of beneficiaries, while ensuring compliance with New Zealand's legal framework, particularly the Trusts Act 2019 and Personal Property Securities Act 1999. It streamlines security arrangements by having a single point of security holding and enforcement, reducing complexity and administrative burden in multi-creditor scenarios.
Suggested Sections

1. Parties: Identifies the security trustee, security provider, and initial beneficiaries

2. Background: Sets out the context of the security trust arrangement, including the underlying facilities or obligations being secured

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

4. Appointment and Role of Security Trustee: Establishes the appointment of the security trustee and outlines their primary roles and responsibilities

5. Declaration of Trust: Creates the trust over the security and specifies the trust property and beneficiaries

6. Security Trustee Powers and Duties: Details the specific powers and duties of the security trustee, including enforcement rights

7. Security Provisions: Describes the security interests being created and their terms

8. Priority and Distribution: Sets out the priority of payments and distribution mechanics for recovered amounts

9. Liability and Indemnity: Addresses the security trustee's liability limitations and indemnification rights

10. Remuneration: Specifies the security trustee's fees and cost recovery rights

11. Resignation and Replacement: Procedures for changing the security trustee

12. Amendments and Waivers: Process for modifying the agreement and effects of waivers

13. Governing Law and Jurisdiction: Specifies New Zealand law as governing law and jurisdiction for disputes

Optional Sections

1. Parallel Debt: Required when dealing with jurisdictions that don't recognize trust concepts or when creating direct enforcement rights

2. Multiple Creditor Provisions: Needed when there are multiple creditor groups with different rights and priorities

3. Security Sharing Provisions: Used when security is shared with other creditors outside the trust structure

4. Future Beneficiaries: Specific provisions for adding or removing beneficiaries over time

5. Special Asset Provisions: Required when dealing with specific types of assets requiring special treatment (e.g., real property, shares, intellectual property)

6. Voting and Decision Making: Required for complex arrangements with multiple beneficiaries who need to make collective decisions

7. Tax Provisions: Specific provisions dealing with tax implications of the security trust arrangement

Suggested Schedules

1. Initial Security: Details of the initial security assets and their registration requirements

2. Initial Beneficiaries: List of initial beneficiaries and their secured amounts

3. Security Trustee Fee Schedule: Detailed breakdown of the security trustee's fees and charges

4. Form of Accession Deed: Template for new beneficiaries to accede to the agreement

5. Form of Resignation and Appointment: Template documents for security trustee resignation and replacement

6. Priority Arrangements: Detailed provisions regarding priorities between different classes of beneficiaries

7. Security Trust Terms: Detailed terms governing the trust relationship and trustee duties

8. Powers of Attorney: Form of power of attorney granted to the security trustee

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















































Clauses




























Relevant Industries

Banking and Financial Services

Corporate Finance

Investment Banking

Real Estate and Property

Infrastructure

Private Equity

Asset Management

Construction and Development

Manufacturing

Energy and Resources

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Corporate Finance

Risk Management

Compliance

Credit

Securities Administration

Transaction Management

Corporate Secretariat

Relevant Roles

Legal Counsel

Senior Legal Counsel

Corporate Lawyer

Finance Lawyer

Banking Lawyer

Transaction Manager

Security Trustee

Facility Agent

Chief Legal Officer

Legal Director

Finance Director

Chief Financial Officer

Treasury Manager

Corporate Finance Manager

Compliance Officer

Risk 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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