The Security Trust Agreement is a crucial document in secured financing transactions where multiple lenders or bondholders need to share security interests in an efficient manner. This agreement, structured under Canadian law, creates a trust mechanism whereby a professional trustee holds security interests on behalf of various secured parties, avoiding the need for individual security arrangements with each lender. The document becomes particularly important in syndicated lending, bond issuances, and project finance transactions where security needs to be shared among changing groups of creditors. It must comply with federal legislation such as the Bank Act and provincial personal property security laws, while also considering Quebec's civil law system where applicable. The agreement typically includes detailed provisions on the trustee's powers and duties, enforcement mechanisms, priority arrangements, and the administration of the security trust.

1. Parties: Identification of the trustee, the security provider(s), and the secured parties (beneficiaries)

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

3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and references to applicable legislation

4. Declaration of Trust: Formal establishment of the trust, specification of trust property, and beneficiary interests

5. Security Interest: Creation and nature of security interests, secured obligations, and charging provisions

6. Trustee Powers and Duties: Detailed powers and responsibilities of the trustee in managing the security and trust

7. Priority and Subordination: Ranking of security interests and arrangements between different classes of secured parties

8. Enforcement: Rights and procedures for enforcing security interests upon default

9. Representations and Warranties: Standard representations by all parties regarding capacity, authority, and validity

10. Covenants: Ongoing obligations of the security provider and other parties

11. Events of Default: Circumstances constituting default and triggering enforcement rights

12. Administration of Trust: Operational aspects of trust management, including meetings and decision-making

13. Remuneration and Indemnification: Trustee compensation and protection provisions

14. Successor Trustees: Provisions for appointment, resignation, and removal of trustees

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