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Security Trust Agreement
"I need a Security Trust Agreement for a renewable energy project in South Africa, where multiple international lenders require security over project assets, with the agreement taking effect from March 1, 2025."
1. Parties: Identification of the Security Trustee, Principal Debtor, Secured Creditors, and any other relevant parties
2. Background: Context of the security arrangement, purpose of the trust, and general commercial background
3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and interpretation rules
4. Establishment of Trust: Creation of the security trust, appointment of trustee, and trust property details
5. Security Trust Assets: Description and details of the assets held in trust as security
6. Powers and Duties of the Security Trustee: Detailed description of trustee's authority, responsibilities, and limitations
7. Rights and Obligations of Secured Creditors: Terms governing the secured creditors' rights, including enforcement and distribution rights
8. Security Structure: Details of how the security interests are held and managed by the trustee
9. Events of Default: Comprehensive list of default events triggering enforcement rights
10. Enforcement of Security: Procedures and rights for enforcing security following an event of default
11. Distribution of Proceeds: Rules for distributing proceeds from enforcement or realization of security
12. Trustee Remuneration and Expenses: Terms regarding trustee compensation and reimbursement of expenses
13. Termination: Circumstances and procedures for terminating the trust arrangement
14. General Provisions: Standard clauses including notices, amendments, governing law, and jurisdiction
1. Parallel Debt: Required when dealing with jurisdictions that don't recognize trust concepts or when creating direct enforcement rights
2. Security Agent Provisions: Needed when the trustee also acts as security agent in foreign jurisdictions
3. Intercreditor Provisions: Required when there are multiple classes of creditors with different priority rights
4. Tax Provisions: Detailed tax arrangements when the security structure has specific tax implications
5. Currency Provisions: Required when the security involves multiple currencies
6. Registration Rights: Specific provisions for registration of security interests in relevant registries
7. Insurance Requirements: Detailed insurance obligations when secured assets require specific insurance coverage
1. Schedule 1 - Secured Creditors: List of all secured creditors and their respective exposure/commitment amounts
2. Schedule 2 - Security Assets: Detailed description of all assets subject to the security trust arrangement
3. Schedule 3 - Security Documents: List and copies of all security documents held by the trustee
4. Schedule 4 - Forms of Accession: Standard forms for new creditors to accede to the agreement
5. Schedule 5 - Distribution Waterfall: Detailed order of priority for distribution of enforcement proceeds
6. Schedule 6 - Fee Structure: Detailed breakdown of trustee fees and payment arrangements
7. Appendix A - Notice Requirements: Formal requirements and templates for various notices under the agreement
8. Appendix B - Resolution Procedures: Procedures for creditor voting and decision-making
Authors
Banking and Financial Services
Real Estate
Mining and Resources
Infrastructure Development
Energy and Utilities
Manufacturing
Telecommunications
Commercial Property
Industrial Development
Project Finance
Private Equity
Asset Management
Legal
Finance
Treasury
Compliance
Risk Management
Corporate Secretariat
Credit
Trust Administration
Security Administration
Transaction Management
Legal Counsel
Finance Director
Security Trustee
Corporate Lawyer
Banking Lawyer
Compliance Officer
Risk Manager
Trust Administrator
Security Agent
Transaction Manager
Chief Financial Officer
Treasury Manager
Company Secretary
Credit Manager
Portfolio Manager
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