¶¶Òõ¶ÌÊÓƵ

The Security Trust Deed is a crucial document in South African secured financing arrangements, commonly used in syndicated lending, bond issuances, and other complex financial transactions. It creates a trust structure where a security trustee holds security interests on behalf of multiple creditors, simplifying the administration of security and avoiding the need to re-register security upon creditor changes. The document must comply with South African trust law, securities regulation, and financial sector legislation. It typically includes detailed provisions on the trust structure, security assets, enforcement mechanisms, trustee duties, and creditor rights. The Security Trust Deed is particularly valuable in transactions involving multiple lenders or frequent changes in security holders, providing a efficient and cost-effective security arrangement structure.

1. Parties: Identification of the Security Trustee, Principal Debtor, Secured Creditors, and any other relevant parties

2. Background: Context of the security arrangement, underlying obligations, and purpose of the trust

3. Definitions and Interpretation: Comprehensive definitions of terms used and interpretation rules

4. Appointment of Security Trustee: Terms of appointment, powers, and authority of the security trustee

5. Declaration of Trust: Formal establishment of the security trust and its terms

6. Security Assets: Description and details of the assets subject to the security arrangement

7. Security Trustee Powers and Duties: Detailed powers, responsibilities, and obligations of the security trustee

8. Rights and Obligations of Secured Creditors: Terms governing secured creditors' rights and responsibilities

9. Enforcement of Security: Procedures and circumstances for enforcing security interests

10. Trust Income and Distributions: Management and distribution of trust income and proceeds

11. Trustee Remuneration and Expenses: Terms of trustee compensation and expense reimbursement

12. Limitation of Liability: Scope of trustee's liability and indemnification provisions

13. Termination and Release: Conditions and process for terminating the trust and releasing security

14. General Provisions: Standard contractual provisions including governing law, notices, and amendments