Security Trust Deed Template for Philippines

The Security Trust Deed is essential in complex financing transactions in the Philippines where multiple lenders or bondholders require security over assets. This document is particularly vital when coordinating security interests among various creditors and ensuring efficient enforcement of security rights. The Security Trust Deed establishes a trust structure where a designated trustee holds security interests on behalf of multiple beneficiaries, avoiding the need for individual security arrangements with each creditor. It complies with Philippine trust and security laws, addressing local requirements for security creation, perfection, and enforcement. The document is commonly used in syndicated lending, project finance, and bond issuances where collective security arrangements are necessary.

1. Parties: Identification of the Security Trustee, Security Provider(s), Beneficiaries, and any other relevant parties

2. Background: Context of the security arrangement, underlying obligations, and purpose of the trust deed

3. Definitions and Interpretation: Definitions of key terms, interpretation rules, and construction principles

4. Declaration of Trust: Formal creation of the security trust and appointment of the security trustee

5. Security Trust: Nature and scope of the security trust, trust property, and beneficiary interests

6. Secured Obligations: Definition and scope of the obligations secured by the trust arrangement

7. Security Trustee Powers and Duties: Powers, authorities, discretions, and obligations of the security trustee

8. Security Assets: Description and treatment of the assets subject to the security trust

9. Representations and Warranties: Standard representations and warranties from relevant parties

10. Covenants: Ongoing obligations and undertakings of the parties

11. Protection of Security Trustee: Limitations of liability, indemnities, and protections for the security trustee

12. Remuneration and Expenses: Security trustee's fees, costs, and expense reimbursement provisions

13. Changes to Parties: Procedures for resignation, removal, and appointment of new trustees or changes to other parties

14. Enforcement: Rights and procedures for enforcing security interests and trust provisions

15. Payments and Application of Proceeds: Distribution waterfall and treatment of recovered amounts

16. Termination: Circumstances and procedures for terminating the trust arrangement

17. Miscellaneous: Standard boilerplate provisions including notices, amendments, governing law

18. Execution: Execution blocks and signing requirements