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Security Trust Agreement
"I need a Security Trust Agreement under Indonesian law for a syndicated loan facility closing on March 15, 2025, where multiple international banks are lending to a mining company, with security over both movable and immovable assets in Indonesia."
1. Parties: Identifies all parties to the agreement including the security trustee, creditors, and security provider
2. Background: Sets out the context of the security arrangement, related facility agreements, and purpose of the security trust
3. Definitions and Interpretation: Defines key terms and establishes interpretation principles for the agreement
4. Appointment and Duties of Security Trustee: Establishes the appointment of the security trustee and outlines their primary responsibilities
5. Declaration of Trust: Formal declaration of the security trust and the assets held in trust
6. Security Trustee Powers and Authorities: Details the powers granted to the security trustee to manage and enforce the security
7. Security Assets: Describes the assets subject to the security trust arrangement
8. Creditors' Rights and Obligations: Outlines the rights and obligations of the creditors in relation to the security trust
9. Enforcement of Security: Procedures and circumstances for enforcing the security interests
10. Distribution of Proceeds: Rules for distributing proceeds from enforcement or realization of security
11. Fees and Expenses: Details of the security trustee's compensation and expense reimbursement
12. Liability and Indemnification: Limitations of trustee liability and indemnification provisions
13. Termination: Circumstances and procedures for terminating the security trust
14. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and jurisdiction for disputes
1. Parallel Debt: Required when dealing with multiple jurisdictions or where direct security interest creation is problematic
2. Security Agent Provisions: Required when the trustee also acts as security agent in other jurisdictions
3. Intercreditor Provisions: Used when there are multiple classes of creditors with different priorities
4. Change of Trustee: Detailed procedures for trustee replacement if not covered in main sections
5. Tax Provisions: Specific tax considerations and allocations if complex tax implications exist
6. Currency Provisions: Required when dealing with multiple currencies in the security arrangement
7. Further Assurance: Additional provisions for future actions to perfect or protect security interests
1. Schedule 1 - Security Assets: Detailed list and description of all assets subject to the security trust
2. Schedule 2 - Form of Accession Deed: Template for new creditors to accede to the agreement
3. Schedule 3 - Creditors and Commitments: List of all creditors and their respective commitments or exposure
4. Schedule 4 - Security Documents: List and copies of all related security documents
5. Schedule 5 - Notice and Acknowledgment Forms: Template forms for notifying relevant parties of the security interest
6. Schedule 6 - Fee Schedule: Detailed breakdown of trustee fees and payment terms
7. Appendix A - Power of Attorney: Form of power of attorney for security trustee actions
8. Appendix B - Registration Requirements: Details of security interest registration requirements under Indonesian law
Authors
Banking
Financial Services
Real Estate
Infrastructure
Energy
Manufacturing
Mining
Telecommunications
Transportation
Construction
Agriculture
Industrial
Commercial Property
Legal
Finance
Compliance
Treasury
Risk Management
Corporate Secretariat
Transaction Management
Credit Administration
Security Operations
Loan Administration
Legal Counsel
Finance Director
Compliance Officer
Corporate Secretary
Risk Manager
Treasury Manager
Security Trustee Officer
Loan Officer
Transaction Manager
Chief Financial Officer
General Counsel
Banking Lawyer
Security Agent
Facility Agent
Corporate Lawyer
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