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Floating Deed Of Trust Template for India

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Key Requirements PROMPT example:

Floating Deed Of Trust

"I need a Floating Deed of Trust for my manufacturing company to secure inventory and equipment worth Rs. 50 crore in favor of State Bank of India, while allowing us to continue normal business operations and trade these assets."

Document background
The Floating Deed of Trust is a sophisticated legal instrument commonly used in Indian commercial finance and security arrangements. It serves as a crucial document when companies need to secure their assets in favor of lenders while maintaining operational flexibility. The document combines the principles of trust law with security arrangements, creating a floating charge that allows companies to continue their normal business operations until a specified event triggers crystallization. This type of deed is particularly valuable in scenarios involving multiple lenders or syndicated loans, where a security trustee holds the security interest on behalf of various beneficiaries. The Floating Deed of Trust must comply with Indian trust law, registration requirements, and stamp duty regulations, making it a complex but essential tool in commercial financing. Its floating nature distinguishes it from fixed security arrangements, providing businesses with the freedom to manage their assets while ensuring adequate protection for secured parties.
Suggested Sections

1. Parties: Identification of the Settlor, Trustee(s), and Beneficiaries with their full legal names and addresses

2. Background: Recitals explaining the context, intention to create the trust, and nature of the floating charge

3. Definitions: Definitions of key terms used throughout the deed, including specific financial and legal terminology

4. Declaration of Trust: Formal declaration creating the trust and specifying its floating nature

5. Trust Property: Description of the initial trust property and provisions for additions/removals

6. Powers and Duties of Trustees: Detailed outline of trustee authorities, responsibilities, and limitations

7. Crystallization Events: Specific circumstances that will cause the floating charge to crystallize into a fixed charge

8. Administration of Trust: Procedures for trust management, decision-making, and record-keeping

9. Rights of Beneficiaries: Specification of beneficiary entitlements and conditions

10. Duration and Termination: Terms regarding trust period and circumstances for termination

11. Governing Law and Jurisdiction: Specification of Indian law as governing law and relevant jurisdiction

12. Execution: Formal execution clause and signature blocks for all parties

Optional Sections

1. Remuneration of Trustees: Include when trustees are to receive compensation for their services

2. Appointment and Removal of Trustees: Include when specific procedures for trustee succession are needed

3. Investment Powers: Include when trustees require specific investment authorities beyond statutory powers

4. Trust Committee: Include when a committee structure is needed for trust governance

5. Arbitration Clause: Include when parties prefer dispute resolution through arbitration

6. Variation Powers: Include when flexibility to modify trust terms is required

7. Foreign Element Provisions: Include when trust has international aspects or foreign beneficiaries

Suggested Schedules

1. Schedule A - Trust Property: Detailed inventory of initial trust property and assets subject to floating charge

2. Schedule B - Beneficiary Rights and Interests: Detailed breakdown of beneficiary entitlements and distribution rules

3. Schedule C - Trustee Powers: Comprehensive list of specific powers granted to trustees

4. Schedule D - Administrative Provisions: Detailed procedures for trust administration and management

5. Schedule E - Crystallization Triggers: Comprehensive list of events triggering crystallization

6. Appendix 1 - Forms: Standard forms for trust administration and notifications

7. Appendix 2 - Investment Guidelines: Specific investment parameters and restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































Clauses






























Relevant Industries

Banking and Financial Services

Manufacturing

Real Estate and Construction

Industrial and Engineering

Technology and Software

Retail and Consumer Goods

Infrastructure Development

Healthcare and Pharmaceuticals

Energy and Utilities

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Secretarial

Trust Administration

Asset Management

Documentation

Credit

Relevant Roles

Chief Financial Officer

Legal Counsel

Corporate Secretary

Trust Administrator

Security Trustee

Compliance Officer

Finance Director

Risk Manager

Treasury Manager

Corporate Lawyer

Banking Relationship Manager

Asset Manager

Trust Officer

Documentation Specialist

Industries






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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