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Subordinate Deed Of Trust Template for India

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Key Requirements PROMPT example:

Subordinate Deed Of Trust

"I need a Subordinate Deed of Trust for a commercial property in Mumbai, where a second lender will provide additional financing of INR 5 crore, subordinate to an existing loan of INR 15 crore, with the transaction expected to close by March 2025."

Document background
The Subordinate Deed of Trust is a crucial document in Indian property and finance transactions where multiple security interests exist on the same property. This document is typically used when there are multiple lenders involved in financing a property, or when additional financing is sought on a property that already has an existing security interest. The deed establishes clear priorities between different beneficiaries, with one taking a subordinate position to another, thereby facilitating layered financing arrangements while protecting the interests of all parties involved. The document must comply with Indian trust laws, property laws, and registration requirements, including the Indian Trusts Act, 1882, and state-specific stamp duty regulations. It becomes particularly relevant in refinancing scenarios, property development projects, and complex commercial real estate transactions where multiple parties have security interests in the same property.
Suggested Sections

1. Parties: Identification of all parties including the Trustor, Trustee, Primary Beneficiary, and Subordinate Beneficiary

2. Background: Context of the trust creation, existing obligations, and reason for subordination

3. Definitions: Definitions of key terms used throughout the deed

4. Trust Property: Detailed description of the property being held in trust

5. Declaration of Trust: Formal declaration creating the trust and specifying its purpose

6. Subordination Terms: Specific terms of subordination, including priority of interests and rights

7. Powers and Duties of Trustee: Comprehensive list of trustee's authorities and responsibilities

8. Rights of Beneficiaries: Detailed description of beneficiary rights and their order of priority

9. Security and Enforcement: Provisions for enforcement of rights and remedies in case of default

10. Term and Termination: Duration of the trust and conditions for termination

11. Governing Law and Jurisdiction: Specification of applicable laws and courts having jurisdiction

12. Execution and Attestation: Formal execution requirements and witness details

Optional Sections

1. Insurance Requirements: Specific insurance requirements for the trust property, included when property requires particular insurance coverage

2. Environmental Provisions: Environmental compliance requirements, included for properties with potential environmental impacts

3. Co-Trustee Provisions: Provisions governing multiple trustees, included when more than one trustee is appointed

4. Foreign Beneficiary Clauses: Special provisions for foreign beneficiaries, included when beneficiaries are non-resident Indians

5. Agricultural Land Provisions: Special provisions for agricultural land, included when trust property includes agricultural land

6. Religious or Charitable Purpose Clauses: Special provisions for religious or charitable trusts, included when trust has charitable purposes

Suggested Schedules

1. Schedule A - Property Description: Detailed legal description of the trust property including boundaries and measurements

2. Schedule B - Primary Security Documents: Details of the primary security documents to which this trust deed is subordinate

3. Schedule C - Existing Encumbrances: List of all existing encumbrances, liens, or charges on the trust property

4. Schedule D - Payment Terms: Detailed payment schedules and terms if applicable

5. Appendix 1 - Property Documents: Copies of property titles, tax receipts, and other relevant property documents

6. Appendix 2 - Consent Documents: Copies of necessary consents and approvals from relevant authorities

7. Appendix 3 - Prior Agreements: Copies of relevant prior agreements affecting the trust property

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







































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Relevant Industries

Banking and Financial Services

Real Estate

Construction

Infrastructure Development

Commercial Property

Residential Property

Industrial Property

Agriculture

Healthcare

Hospitality

Education

Relevant Teams

Legal

Real Estate

Finance

Compliance

Risk Management

Property Management

Corporate Affairs

Documentation

Trust Administration

Mortgage Operations

Relevant Roles

Legal Counsel

Property Lawyer

Real Estate Manager

Finance Manager

Trust Administrator

Compliance Officer

Property Rights Officer

Real Estate Developer

Mortgage Officer

Banking Executive

Property Registration Officer

Title Officer

Risk Manager

Corporate Lawyer

Property Documentation Specialist

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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