Taking security from trust funds

Produced in partnership with Martin Blake of Farrer & Co
Practice notes

Taking security from trust funds

Produced in partnership with Martin Blake of Farrer & Co

Practice notes
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Trustees and trust assets

In many respects, taking security from trustees over trust assets is similar to taking security from chargors who own the relevant asset outright. Considerations which would apply when taking security from an individual will also apply when taking security from individual trustees and the same for their corporate equivalents. This Practice Note does not seek to cover areas and issues which are of general application when taking security but rather focuses on those particular points to bear in mind when taking security over trust assets.

This Practice Note covers the following matters:

  1. the nature of trusts

  2. the powers of trustees to borrow and grant security

  3. particular issues to consider where security is taken over land

  4. regulatory aspects, and

  5. documentary considerations

Please note that this Practice Note considers issues relating to the taking of security from trustees generally and not charity trustees. For a consideration of issues relevant to charity trustees, see Practice Note: Mortgages by charity trustees.

Before looking at specific points which concern taking

Martin Blake
Martin Blake

Martin is a partner in the banking and financial services team at Farrer & Co. He has broad experience in a range of domestic and international banking and finance matters, including general corporate and individual lending, workouts and restructuring, property finance and acquisition finance. Martin advises lenders, borrowers and sponsors on syndicated, bilateral, secured, unsecured and structured financing transactions. He is familiar with dealing with a variety of assets used as collateral, including land, intellectual property, stocks and shares, revenue streams and other contractual rights.

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Jurisdiction(s):
United Kingdom
Key definition:
security definition
What does security mean?

money deposited to ensure that the defendant attends court;

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