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Purchase Money Trust Deed Template for Australia

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Key Requirements PROMPT example:

Purchase Money Trust Deed

"I need a Purchase Money Trust Deed for securing a loan of AUD 2.5 million for the purchase of mining equipment in Western Australia, with ABC Bank as beneficiary and XYZ Mining Trust as trustee, to be executed by March 2025."

Document background
The Purchase Money Trust Deed is essential in Australian financing arrangements where a lender provides funds for the purchase of specific assets or property and requires security over those assets. This document is commonly used in commercial transactions, asset financing, and property acquisitions where traditional mortgage arrangements may not be suitable or preferred. The deed establishes the trust relationship, defines the security arrangements, specifies payment obligations, and outlines enforcement rights. It must comply with Australian trust law, the Personal Property Securities Act 2009 (Cth), and relevant state property legislation. The document is particularly valuable when complex security arrangements are needed or when multiple parties are involved in the financing structure.
Suggested Sections

1. Parties: Identifies and defines the parties: Trustee, Beneficiary (Lender), and Grantor (Borrower)

2. Background: Sets out the context of the purchase money arrangement and the intention to create the trust

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

4. Declaration of Trust: Formal establishment of the trust arrangement and trust property

5. Security Interest: Creation and nature of the security interest over the trust property

6. Payment Obligations: Details of payment requirements, schedules, and methods

7. Trustee Powers and Duties: Comprehensive listing of trustee's authority and responsibilities

8. Representations and Warranties: Key statements and guarantees by all parties

9. Events of Default: Circumstances constituting default and consequences

10. Enforcement Rights: Powers and procedures for enforcing security interests

11. Protection and Limitation of Liability: Trustee protection provisions and liability limitations

12. Termination and Discharge: Conditions and process for ending the trust arrangement

13. General Provisions: Standard provisions including notices, amendments, governing law

Optional Sections

1. Multiple Trustees Provisions: Required when there are multiple trustees to govern their relationship and decision-making

2. Priority Arrangements: Needed when there are multiple security interests or lenders involved

3. GST Provisions: Detailed GST handling if the trust property or transactions involve GST

4. PPSA Specific Provisions: Additional provisions when Personal Property Securities Act registration is required

5. Foreign Investment Provisions: Required when foreign investment rules apply to the arrangement

6. Guarantee and Indemnity: Optional section for when additional security through guarantors is required

Suggested Schedules

1. Schedule 1 - Trust Property Description: Detailed description of the property held in trust

2. Schedule 2 - Payment Terms: Detailed payment schedule, amounts, and calculation methods

3. Schedule 3 - Security Details: Specific details of security arrangements and registrations

4. Schedule 4 - Required Insurance: Insurance requirements for the trust property

5. Appendix A - Form of Notice: Template for formal notices under the deed

6. Appendix B - Compliance Certificate: Template for periodic compliance certification

7. Appendix C - Transfer Forms: Standard forms for transferring trust property

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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

Financial Services

Real Estate

Commercial Property

Manufacturing

Retail

Mining and Resources

Agriculture

Infrastructure

Transport and Logistics

Construction

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Services

Property Management

Asset Management

Credit

Company Secretariat

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Corporate Lawyer

Trust Manager

Security Trustee Officer

Commercial Manager

Risk Manager

Compliance Officer

Property Manager

Asset Manager

Treasury Manager

Credit Manager

Documentation Specialist

Company Secretary

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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