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Second Trust Deed
"I need a Second Trust Deed for a commercial property in Berlin valued at €5 million, where the first trust deed is for €3 million, and we need to secure an additional €1 million loan that will be used for property renovations, with the transaction closing planned for March 2025."
1. Parties: Identification of the Trustor (property owner), Trustee, and Beneficiary (lender)
2. Background: Context of the transaction, including reference to the first trust deed and the underlying loan or obligation being secured
3. Definitions: Key terms used throughout the deed, including property description, secured obligations, and relevant German law concepts
4. Creation of Security Interest: Express creation of the trust deed and acknowledgment of its second-priority status
5. Property Description: Detailed legal description of the encumbered property as registered in the German land register
6. Secured Obligations: Description of the debt or obligations secured by the trust deed
7. Covenants of the Trustor: Trustor's obligations regarding property maintenance, insurance, taxes, and compliance with laws
8. Priority and Subordination: Provisions regarding the relationship with the first trust deed and other potential encumbrances
9. Default and Remedies: Events of default and available remedies under German law
10. Enforcement Provisions: Procedures for enforcement in accordance with German forced sale regulations
11. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction
1. Insurance Requirements: Detailed insurance obligations when specific insurance requirements are needed beyond standard coverage
2. Environmental Provisions: Specific environmental warranties and covenants when the property has environmental risks or concerns
3. Cross-Default Provisions: Provisions linking defaults under other loans or the first trust deed when required by the lender
4. Property Management: Specific requirements for property management when the property is commercial or requires professional management
5. Assignment and Transfer: Detailed provisions regarding the ability to assign or transfer rights when not covered by standard terms
1. Property Description Schedule: Detailed technical description of the property including cadastral information and land register details
2. Secured Obligations Schedule: Detailed description of the secured loan or obligations, including payment terms and conditions
3. Prior Encumbrances Schedule: Details of the first trust deed and any other prior registered encumbrances
4. Insurance Schedule: Specific insurance requirements and minimum coverage amounts
5. Form of Land Register Application: Template for the German land register application (Grundbuchantrag) for registration of the security interest
6. Powers of Attorney: Required powers of attorney for land register registration and enforcement actions
Authors
Applicable Law
Beneficiary
Business Day
Default Event
Enforcement Event
First Trust Deed
First Trust Deed Holder
Grundbuch
Grundschuld
Land Register
Loan Agreement
Material Adverse Effect
Permitted Encumbrances
Prior Ranking Rights
Property
Property Documents
Registered Office
Secured Obligations
Secured Parties
Security Interest
Security Period
Subordination Arrangements
Trust Deed
Trustee
Trustor
Underlying Obligation
Valuation
ZVG
Property Description
Priority and Subordination
Representations and Warranties
Covenants
Insurance
Default
Enforcement
Registration
Property Maintenance
Assignment
Costs and Expenses
Notices
Amendments
Severability
Set-off
Further Assurance
Governing Law
Land Register Consent
Tax Obligations
Environmental Compliance
Insurance Requirements
Cross-Default
Acceleration
Remedies
Foreclosure Rights
Indemnification
Survival
Entire Agreement
Authority
Real Estate
Banking & Financial Services
Commercial Property Development
Residential Property Development
Property Investment
Construction
Real Estate Investment Trusts (REITs)
Property Management
Legal
Real Estate
Finance
Risk Management
Compliance
Property Management
Investment
Credit Administration
Corporate Banking
Real Estate Development
Real Estate Lawyer
Property Finance Manager
Mortgage Specialist
Real Estate Investment Manager
Property Portfolio Manager
Legal Counsel
Banking Relationship Manager
Real Estate Transaction Manager
Risk Manager
Compliance Officer
Property Development Director
Real Estate Fund Manager
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