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Security Trust Deed Template for Australia

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Key Requirements PROMPT example:

Security Trust Deed

"I need a Security Trust Deed under Australian law for a syndicated loan facility closing on March 15, 2025, where ABC Trust Company Limited will act as security trustee for a group of five banks providing financing to a mining company, with specific provisions for future lenders to accede to the arrangement."

Document background
The Security Trust Deed is a fundamental document in Australian secured financing transactions where multiple creditors are involved. It creates a trust structure whereby a security trustee holds security interests on behalf of various beneficiaries (typically lenders or bondholders), avoiding the need for individual security arrangements with each creditor. The deed establishes the trustee's appointment, powers, and duties, sets out beneficiaries' rights, and provides mechanisms for security enforcement and proceeds distribution. It's particularly valuable in syndicated loans, project financing, and bond issuances where efficient security management is crucial. The document must comply with Australian trust law, corporations law, and the Personal Property Securities Act 2009 (Cth), making it a sophisticated instrument for managing secured creditor relationships.
Suggested Sections

1. Parties: Identifies the security trustee, initial beneficiaries (secured parties), and the security provider

2. Background: Sets out the context of the security trust arrangement and its purpose

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

4. Declaration of Trust: Establishes the security trust and declares the trustee holds the security property on trust

5. Trustee Appointment and Powers: Details the appointment of the security trustee and its powers in managing the trust

6. Security Trustee Rights and Obligations: Specifies the rights, duties, and obligations of the security trustee

7. Beneficiaries' Rights and Obligations: Details the rights and obligations of beneficiaries under the trust

8. Priority and Distribution: Establishes the priority between beneficiaries and distribution of proceeds

9. Security Enforcement: Sets out procedures and powers for enforcing security interests

10. Liability and Indemnity: Addresses the security trustee's liability and indemnification rights

11. Remuneration and Expenses: Details the trustee's fees and right to recover expenses

12. Retirement and Replacement: Procedures for the retirement and replacement of the security trustee

13. Meetings and Resolutions: Procedures for beneficiary meetings and passing resolutions

14. Amendments and Termination: Provisions for amending the deed and terminating the trust

15. General Provisions: Standard boilerplate provisions including notices, governing law, etc.

Optional Sections

1. Security Property Register: Required when multiple security properties need to be tracked and registered

2. Parallel Debt: Used in cross-border transactions where security interests need to be held in jurisdictions that don't recognize trust concepts

3. Future Beneficiaries: Included when the security trust needs to accommodate additional future secured parties

4. Custodian Provisions: Required when a separate custodian is appointed to hold security documents

5. Special Purpose Vehicle Provisions: Needed when the security provider is an SPV with specific covenants

6. Security Sharing Provisions: Used when multiple classes of beneficiaries have different security sharing arrangements

7. Controller Provisions: Required when specific provisions for appointed controllers are needed

Suggested Schedules

1. Security Properties: List and details of all security properties covered by the trust

2. Initial Beneficiaries: Details of all initial beneficiaries and their secured amounts

3. Security Trustee Fee Schedule: Detailed breakdown of the security trustee's fees and charges

4. Meeting Procedures: Detailed procedures for conducting beneficiary meetings

5. Forms: Standard forms including transfer certificates, accession deeds, and resignation/appointment documents

6. Priority Arrangements: Detailed priority and subordination arrangements between beneficiaries

7. Security Enforcement Procedures: Detailed procedures for enforcement of security interests

8. Distribution Waterfall: Detailed procedures for distribution of enforcement proceeds

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 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

Banking & Financial Services

Real Estate & Property

Infrastructure

Mining & Resources

Energy

Manufacturing

Agriculture

Private Equity

Asset Finance

Project Finance

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Secretariat

Trust Administration

Security Administration

Transaction Management

Credit

Relevant Roles

General Counsel

Legal Counsel

Finance Director

Chief Financial Officer

Treasury Manager

Security Trustee Manager

Compliance Officer

Risk Manager

Transaction Manager

Facility Agent

Corporate Lawyer

Banking & Finance Lawyer

Company Secretary

Trust Manager

Security Administrator

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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