What we do
Security Trusteeship is a contractual arrangement amongst Borrower, Lenders and Security Trustee materialized by executing a document called Security Trustee Agreement (STA) wherein the Borrower, settles a trust with the Security Trustee. Trust will hold Secured Properties (any kind of movables, immovables, pledge of shares, rights, etc.) and the Security Trustee will act as a Trustee to such Trust.
Advantages to Lenders:
- Hold security as per terms of sanction for the benefit of Lenders in respect of Bilateral or Consortium lending programs.
- Vetting of documents before execution.
- Ensure permission/s from Statutory / Regulatory / Existing Lenders /Lessor’s prior to creation of security.
- Obtaining all Corporate Resolutions before execution and Borrowings.
- Vetting of title search reports of the mortgagor and inform the short coming/s if any to the Lenders. This enhances the scrutiny and it becomes double check
i.e. from Lender as well as the holder / Trustee.
- Safe keep the document in a fire proof vault at respective places of execution due to stamp duty implication and also avoiding frequent transfer of title deeds from one Lender to another in case of down-selling.
- Confirm to the Lenders about the security held by us.
- Hold pledge / NDU in our favour as per SAST guidelines for individual /several Lenders; thereby shares are encumbered only to oneparty. Act as per Lender/s instructions for release of security. Banks are not allowed to holdmore than 30 % equity stake in any company we can hold 30% equity stake on their behalf. Appropriate disclosures in respect of listed shares are done in stock exchanges to effect the correct pledge position.
- Compliance with registration of charges as specified under Companies Act,2013.
- Compliance with CERSAI rules.
- By extending security in favour of Trustee, Lender can assign the loan to suit his needs without incurring additional expenses towards stamp duty etc
- Obtain consent of Lenders during the currency of loan with regards to issuance of NOC or Security issue and thereby assure protection of the interest of the Lenders.
- Verify the letters from Lenders prior to modification/ satisfaction of loan.
- Execute re-conveyance deeds on satisfaction.
- Furnish confirmation letter on request from Lenders for Audit purposes.
- Undertake enforcement on the directions of Lenders.
Advantages to Borrowers:
- Single point of contact in consortium funding or multiple banking structures.
- Single charge created in favour of Trustee for the benefit of various Lenders. This helps Borrower in saving stamp duty
- It also helps Borrower at the time of any modification/s and satisfaction
- Borrower deposits all original security documents/ deeds to a professional independent body and not to any single Lender
- Borrower approaches Trustee for all his charge in security extended to Trustee for the benefit of Lenders
- By extending security in favour of Trustee, Borrower can assign the loan to suit his needs without involvement of lenders
- Served as Debenture Trustee / Security Trustee for a large number of clients
- Rich experience of almost two decades in this field
- A well-equipped team of experts comprising Chartered Accountants, Lawyers, Company Secretaries and others possessing rich experience in Banking and Debt Markets, making us the best in the business
- Timely drafting, vetting and execution of documents
- Securitizing loan portfolio with minimal documentation
- Safe custody of title deed
- Expeditious and effective enforcement of security in the event of default
- Efficient monitoring of the borrowers’ financial standing from time to time
- Healthy participation of domestic and international Lenders
- Lender replacement within identified debt with operational flexibility
- Structuring the transaction as per needs of Lender based on inputs and discussions.
- Vetting of transaction documents for security creation
- Conceptualising, customising and structuring of the security documents to consolidate documentation ensuring compliance with all the terms and conditions of the loan agreements of all lenders
- Liasoning with lenders and the Legal Counsel on drafting the security documents
- Create / hold security in favour of the Security Trustee on behalf of the lenders
- Perfection of Security Interest created under
– Companies Act, 2013 – Registration of Charges
– CERSAI rules.
- Keep the security documents and title deeds in the safe custody
- monitor the security & if need be, review financial position of Borrowers from time to time
- monitor the Asset Coverage Ratio, if stipulated.
- maintain Records and submit various reports to the Lenders.
- re-convey the mortgaged properties on repayment.
- monitor insurance policies.
- Security enforcement in case of default.
– Issue of Notice to Borrower
– Completion of Curation Period
– Obtaining requisite Approvals
– Completion of Court Procedure
– Obtaining Decree