Security Trust Deed
Security Trust Deed
This Security Trust Deed ("Deed") is made by [YOUR NAME], the Grantor, whose address is [YOUR COMPANY ADDRESS], in favor of the Beneficiary, [YOUR COMPANY NAME].
I. PARTIES INVOLVED
A. Grantor
The borrower or grantor issues a Security Trust Deed to pledge specific assets as collateral for a loan or obligation.
B. Beneficiary
The lender or beneficiary of the security trust receives a copy of the Security Trust Deed, providing them with rights to the pledged assets in case of default.
C. Trustee
A neutral third party is responsible for holding the security interest in the trust and administering the trust assets.
II. RECITALS
This Deed is entered into with the following considerations:
A. Loan Agreement
The Grantor is indebted to the Beneficiary under a loan or credit agreement dated [Date of Agreement].
B. Security Arrangement
In consideration of the loan, and to secure the repayment of the debt, the Grantor agrees to convey certain assets to the Trustee, to be held in trust as security for the benefit of the Beneficiary.
III. DEFINITIONS AND INTERPRETATIONS
A. Debt
The total amount owed by the Grantor to the Beneficiary as detailed in the loan or credit agreement.
B. Security
The assets or property pledged by the Grantor, held in trust by the Trustee.
C. Default
A failure by the Grantor to meet the obligations stipulated in the loan or credit agreement leads to the enforcement of security.
IV. GRANT OF SECURITY INTEREST
A. Pledged Assets
The Grantor hereby grants the Trustee a security interest in the following described property and assets:
|
Asset Description |
Location/Details |
|---|---|
|
Real Property |
[Description of Real Property] |
|
Bank Accounts |
[Details of Bank Accounts] |
|
Securities |
[Details of Securities] |
|
Other Tangible Assets |
[Description of Other Assets] |
B. Purpose of Security Interest
This security interest is granted to secure the repayment of the Debt and any other obligations specified in the loan or credit agreement.
C. Custody by Trustee
The Trustee agrees to hold these assets until the Debt has been fully repaid or until a default occurs, as per the terms outlined in this Deed.
V. REPRESENTATIONS AND WARRANTIES
A. Ownership
The Grantor warrants that they are the lawful owner of the pledged assets and that they have the right to pledge them as security.
B. Validity
The Grantor warrants that the Security Trust Deed is valid and enforceable against them.
C. No Encumbrances
The Grantor warrants that the pledged assets are free from any liens or encumbrances other than those disclosed to the Beneficiary.
VI. COVENANTS
A. Insurance
The Grantor agrees to maintain adequate insurance coverage on the pledged assets for the duration of this agreement.
B. Tax Obligations
The Grantor agrees to pay all taxes, assessments, and other charges relating to the pledged assets promptly.
C. Compliance
The Grantor agrees to comply with all applicable laws and regulations regarding the pledged assets.
VII. EVENT OF DEFAULT
An event of default occurs under this Deed if any of the following circumstances arise:
A. Non-Payment
Failure by the Grantor to repay the Debt according to the terms of the loan or credit agreement.
B. Breach
Breach of any covenants or agreements in this Deed without cure within the agreed period.
C. Insolvency
Initiation of insolvency or bankruptcy proceedings against the Grantor.
VIII. REMEDIES
A. Enforcement
In case of default, the Beneficiary may enforce the security interest held by the Trustee and take possession of the pledged assets.
B. Sale of Assets
The Trustee may sell or dispose of the pledged assets upon default to recover the outstanding Debt.
IX. MISCELLANEOUS
A. Governing Law
This Deed shall be governed by and construed by the laws of the jurisdiction in which [YOUR COMPANY NAME] operates.
B. Notices
All notices and communications must be in writing and sent to the parties' respective addresses as mentioned at the beginning of this Deed.
C. Entire Agreement
This Deed constitutes the entire agreement between the parties concerning its subject matter and supersedes all prior agreements or understandings.
X. EXECUTION
This Deed is executed by the parties as of the [Execution Date], each party acknowledging and agreeing to the terms herein.
A. Grantor
The Grantor, [YOUR NAME], hereby acknowledges and affirms the execution of this Deed and agrees to be bound by its terms.
[YOUR NAME]
[DATE SIGNED]
B. Trustee
The Trustee, [TRUSTEE'S NAME], hereby acknowledges and accepts the responsibility entrusted upon them and affirms the execution of this Deed.
[TRUSTEE'S NAME]
[DATE SIGNED]
C. Beneficiary
The Beneficiary, [YOUR COMPANY NAME], acknowledges the execution of this Deed and agrees to fulfill their obligations as outlined herein.
[BENEFICIARY'S NAME]
[DATE SIGNED]
XI. NOTARIZATION
This Deed requires notarization to ensure its legal validity. The parties shall sign this Deed in the presence of a notary public, who will certify the signatures and affix the official seal.
Notary Name: [NOTARY NAME]
Commission Number: [NOTARY COMMISSION NUMBER]
Expiration Date: [NOTARY EXPIRATION DATE]
