The most obvious advantage of including an agent as collateral is that it protects the rights of bondholders. In essence, the securities trust can prevent any unregulated action that could affect the implementation of the financial transaction. In addition, it can raise capital by investing with different creditors without having to provide a separate guarantee to each creditor, reducing costs and complexity and saving time. Each creditor has a financial interest in the trust and not in the individual assets. Under the execution of STA, the borrower is required to create all guarantees in favor of the security agent, including a mortgage on real estate. The fiddary holds a royalty on the borrower`s assets, including participation in the underlying securities on behalf of multiple lenders. Thus, under the agreement, the mortgage/mortgage and all other charges on other securities are created by the borrower for the benefit of the lenders for the benefit of a single entity called a “securities trustee”. In other words, lenders are represented by the security agent as the sole representative. This contractual agreement is perfectly legal, valid, binding and enforceable. With regard to financial transactions such as securitisation, it is important that the securities agent is both an experienced expert and an independent party and has the right to have access to appropriate and relevant information concerning the assets, so that the trustee can monitor the compliance of bond issuers with the obligations set out in the fiduciary act.
The role of the representative is to reduce complications and bring added value and comfort to the participants. Mandaris Trustees (Malta) Ltd., a fully licensed trust company recognised by the Trusts and Trustees Act and a subsidiary of Coprolin SCC plc, offers independent issuers the opportunity to enjoy the benefits of using a security agent in commercial structures. Mandaris understands the complexity of structured financial transactions, as it has participated in a series of securitisation transactions through its Coprolin securitisation platform. Our team has the experience and technical know-how to carry out this type of niche financing and provide our clients with a step-by-step guide. According to Maltese law, a Security Trust also allows for a subsequent change of lenders. This is particularly relevant in cases where there is a consortium of lenders willing to sell their credit stake without compromising the collateral received during the initial training. In theory, the agent may consult with bondholders before taking action, but if this is not possible by other means or if the agent chooses not to do so, the agent may exercise its discretion to take the necessary steps to jointly protect the interests of bondholders. Article 2095E, inserted in the Civil Code, provides for the possibility of creating “a guarantee in favour of an agent in favour of a creditor or a current or future creditor, or in favour of one or two classes of creditors”.. . .