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Protected Trust Deed
"I need a Protected Trust Deed drafted for my manufacturing business in Karachi, involving five major creditors with combined debt of PKR 25 million, to be effective from March 1, 2025, with special consideration for ongoing business operations and monthly payment schedules."
1. Parties: Identifies all parties including the debtor (grantor), the trustee, and any secured/unsecured creditors
2. Background: Explains the context of the trust deed, including the debtor's financial situation and reason for the arrangement
3. Definitions: Defines key terms used throughout the document
4. Declaration of Trust: Formal establishment of the trust and transfer of assets
5. Appointment of Trustee: Details of trustee appointment, powers, and responsibilities
6. Trust Property: Description and details of assets being transferred into the trust
7. Debtor's Obligations: Detailed obligations and commitments of the debtor under the trust deed
8. Creditors' Rights: Rights and entitlements of creditors under the arrangement
9. Distribution of Funds: Methods and priorities for distributing funds to creditors
10. Duration and Termination: Period of the trust deed and circumstances for termination
11. Governing Law and Jurisdiction: Confirmation of Pakistani law application and jurisdiction
1. Security Provisions: Additional security arrangements when specific assets are used as collateral
2. Income Contribution: Specific arrangements for regular income contributions when the debtor has variable income
3. Third Party Guarantees: When additional guarantees are provided by third parties
4. Early Discharge Provisions: Terms for early completion of the trust deed if circumstances allow
5. Business Assets Provisions: Special provisions when business assets are involved
6. Islamic Finance Compliance: Additional provisions to ensure compliance with Islamic finance principles if required
7. Variation Provisions: Procedures for varying the terms of the trust deed if circumstances change
1. Schedule 1 - List of Creditors: Detailed list of all creditors and their respective claims
2. Schedule 2 - Asset Inventory: Comprehensive inventory of all assets transferred to the trust
3. Schedule 3 - Payment Schedule: Detailed payment plan including amounts and dates
4. Schedule 4 - Excluded Assets: List of assets specifically excluded from the trust arrangement
5. Schedule 5 - Trustee's Fees: Detailed breakdown of trustee's fees and expenses
6. Appendix A - Creditor Claims Forms: Standard forms for creditors to submit and verify claims
7. Appendix B - Financial Statement: Detailed financial statement of the debtor's position
8. Appendix C - Compliance Requirements: Checklist of ongoing compliance requirements for all parties
Authors
Financial Services
Banking
Legal Services
Insolvency Services
Debt Management
Professional Services
Islamic Finance
Corporate Services
Real Estate
Asset Management
Legal
Finance
Compliance
Risk Management
Credit Management
Corporate Advisory
Debt Recovery
Asset Management
Trust Administration
Islamic Banking
Regulatory Affairs
Insolvency Practitioner
Trust Manager
Legal Counsel
Financial Advisor
Debt Management Specialist
Compliance Officer
Risk Manager
Asset Manager
Banking Officer
Credit Manager
Corporate Lawyer
Financial Controller
Wealth Manager
Islamic Finance Specialist
Trust Administrator
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