Introduction
As a reminder, a Security Trustee is a person or entity who
holds security on behalf of lenders. They are appointed to
safeguard and manage the assets that are put up as collateral for a
loan. Security Trustees play an important role in providing comfort
to lenders and ensuring that they are protected in case of a
borrower default.
Dixcart Trust Corporation Limited operate a number of corporate
security trustee arrangements, primarily for property development
and acquisition lending, particularly loan note and alternative
debt arrangements.
Role of Security Trustees
The primary role of a Security Trustee is to act as an
independent third-party that holds security on behalf of lenders.
This means that the Security Trustee is responsible for managing
the security, ensuring that it is properly maintained and
protected, and that any proceeds from the security are distributed
to the lenders in accordance with the terms of the security
agreement.
