What Is A Security Trust Agreement
A security agent is a natural or legal person who maintains security for the benefit of others. The guarantee may include a property charge, a obligation on a company`s assets and obligation, bank account fees or a combination of other types of guarantees for the performance of obligations. Maltese legislation provides for a number of security solutions in commercial and private situations, both through the civil code and the Trust Act and the Fiduciary Law (Chapter 331 of Maltese Laws). The evolution of the legislation allows for greater flexibility in security agreements, including cases where the agent is also a creditor, as in the case of structured financing or syndicated transactions where assets are consolidated within a trust and the guarantee is assumed on the whole pool and not on several assets. Investment instruments can also be pooled and security can be implemented in a similar way. Mandaris Trustees (Malta) Ltd is an independent trust company which, in accordance with the Trust and Trustees Act, can fully exercise its functions as a security fiduciary in Malta and is able to act impartially as a security agent. Article 2095E, enshrined in the Civil Code, provides for the possibility of “creating guarantees for the benefit of an agent for the benefit of a present or future creditor or for the benefit of a class or class of creditors.” Maltese law recognizes that the security officer maintains security in trust in the interests of all creditors who guarantee the current and future debt, which can and can be theirs. A security agreement may be oral if the guaranteed party (the lender) is in possession of the guarantees. If the guarantee is physically held by the borrower or if the guarantee is an intangible value (.
For example, a patent, [1) of claims or a debt title), the guarantee agreement must be made in writing to comply with the fraud law. The security contract must be authenticated by the debtor, i.e. it must bear the debtor`s signature or be marked electronically. It must provide an appropriate description of the guarantees and use words that show an intention to create an interest in securities (the right to claim repayment of the loan through stolen property). In order for the security contract to be valid, the borrower must normally have rights to the guarantees at the time the contract is implemented. If a borrower promises as collateral a car owned by a neighbour and the neighbour does not know or support this promise, the security agreement is ineffective. However, a security agreement may specify that it contains post-acquired properties. If such a specification is included, then a promise of “all cars in the borrower`s possession” would include the neighbor`s car if the borrower were to buy that car from the neighbor. Under Maltese law, a security agent also allows lenders to be modified at a later date. This is particularly important in cases where there is a consortium of lenders willing to sell their shareholding in the loan without infringing on the guarantees received during the initial installation. The security agent can assist in a number of different scenarios, whether it is a simple bond transaction or capital raising structures.