Debt Trust Deed for the United Kingdom

Debt Trust Deed Template for England and Wales

A Debt Trust Deed is a legal document under English and Welsh law that establishes a trust structure for managing debt securities. It sets out the terms and conditions governing the relationship between the issuer, trustee, and bondholders, including security arrangements, enforcement rights, and trustee powers. The document provides a framework for the administration of the debt and protection of bondholder interests, typically used in bond issuances and secured lending arrangements.

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What is a Debt Trust Deed?

A Debt Trust Deed is commonly used in England and Wales when companies issue bonds or other debt securities to multiple investors. The document creates a trust structure where a trustee holds security and certain rights on behalf of the bondholders, simplifying the administration of the debt and enforcement of security. It contains detailed provisions regarding the powers and duties of the trustee, events of default, enforcement mechanisms, and security arrangements. The trust structure is particularly useful where there are numerous bondholders, as it allows for collective action and provides a streamlined mechanism for managing the security.

What sections should be included in a Debt Trust Deed?

1. Parties: Identifies the issuer, trustee, and any other relevant parties

2. Background: Sets out the context and purpose of the trust deed

3. Definitions: Defines key terms used throughout the document

4. Constitution of the Trust: Establishes the trust and its basic terms

5. Trustee Powers and Duties: Details the powers and responsibilities of the trustee

6. Security Provisions: Details of any security arrangements

7. Events of Default: Specifies circumstances constituting default

8. Enforcement: Procedures for enforcing security and rights

What sections are optional to include in a Debt Trust Deed?

1. Further Issues: Provisions for issuing additional debt instruments when the issuer may want to issue additional debt in the future

2. Guarantee Provisions: Terms of any guarantees when there are guarantors involved

3. Subordination Provisions: Rules regarding priority of debt when there are multiple classes of debt

What schedules should be included in a Debt Trust Deed?

1. Form of Global Note/Bond: Template for the debt instrument

2. Form of Transfer Certificate: Template for transferring interests in the debt

3. Security Documents: Details of security arrangements and properties

4. Trustee Provisions: Detailed provisions regarding trustee powers and protections

5. Meetings Provisions: Procedures for noteholder meetings and voting

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Trust Deed

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Trustee Act 1925: Core legislation defining trustee powers, duties, investment powers, and procedures for appointment and retirement of trustees

Trustee Act 2000: Modern update to trust law covering trustee's duty of care, enhanced investment powers, and delegation authorities

Law of Property Act 1925: Fundamental legislation governing property rights, interests, and security arrangements, particularly relevant for real property as security

Financial Services and Markets Act 2000: Regulatory framework governing transferable securities and public offerings of debt instruments

Companies Act 2006: Legislation relevant when corporate trustees are involved and for requirements regarding company charges

Insolvency Act 1986: Contains provisions affecting creditor rights and security enforcement in case of insolvency

Consumer Credit Act 1974: Legislation providing consumer protection provisions, particularly relevant if retail investors are involved

Financial Collateral Arrangements (No.2) Regulations 2003: Regulations governing arrangements involving financial collateral in security structures

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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