In single or multiple lending transactions, it is normal business practice to issue security for loan facilities in the name of a security trustee. Rather than taking their own security, the lenders join in the security trust. This substantially simplifies secured financing because each lender’s rights are explicitly stated in the Trust Deed. Other significant advantages include, but are not limited to, the following:

1. Access to standardized security sharing agreements that simplify loan operations;
2. Facilitation of lender entry and departure without the requirement for the Borrower to transfer assets produced by the Borrower;
3. Elimination of the necessity for financiers to negotiate security interest precedence with the Borrower and other financiers;
4. Lenders’ attention is guaranteed to be focused on commercial concerns, freeing up their time and resources for security-related matters.
5. Lenders’ concerns about the integrity of security sharing arrangements are alleviated.