Maltese legislation provides for a number of security solutions in commercial and private situations, both through the civil code and the Trust Act and the Fiduciary Law (Chapter 331 of Maltese Laws). The evolution of the legislation allows for greater flexibility in security agreements, including cases where the agent is also a creditor, as in the case of structured financing or syndicated transactions where assets are consolidated within a trust and the guarantee is assumed on the whole pool and not on several assets. Investment instruments can also be pooled and security can be implemented in a similar way. Mandaris Trustees (Malta) Ltd., a licensed trust company recognized by the Trusts and Trustees Act and a subsidiary of Coprolin SCC plc, offers the opportunity to enjoy the benefits of using a security agent in commercial structures for independent issuers. Mandaris understands the complexity of structured financial transactions, as it has participated in a series of securitization transactions through its affiliated securitization platform, Coprolin. Our team has the experience and technical know-how to achieve this type of niche financing and provide advice to our clients step by step. In accordance with STA`s performance, the borrower is required to create all securities for the benefit of the security agent, including a mortgage on real estate. The sale-leaser imposes a burden on the borrower`s assets, including participation in underlying securities on behalf of multiple lenders. Thus, under the Hypothecation/Mortgage agreement and any other charges of other securities are created by the borrower for the benefit of a single entity called “Security Trustee” for the benefit of lenders. In other words, lenders are represented by the security agent as a single representative. Since it is a contractual agreement, it is entirely legitimate, valid, binding and enforceable. The agent, who is more an agent than an agent, is in principle held in trust of the beneficiaries of the fiduciary property, namely the lenders of a syndicated loan. An attorney is someone who is committed to acting for another in circumstances that lead to a relationship of trust.
The agent submits his own interest to that of the principals and will act in good faith. In the case of a trust offering, the agent may grant and hold guarantees on his behalf (indicating that he is acting in his capacity as security agent) regardless of the number of creditors (or lenders) and regardless of any transfers or transfers made by the bondholders of their interest in the facility. Security Trustee is the organization that acts in the place of lenders because it holds the guarantee and imposes it for and on behalf of lenders for the benefit of lenders.