Collateral Trust Deed

As a collateral Escrow be referred substantially contracts, by means of which a trustee collateral be designated to this in favor of several creditor holds and manages, wherein said trustee is often even one of the creditor.

A collateral trust agreement is largely comparable to a collateral pool agreement. It differs from the collateral pool contract in particular in that no standstill agreement ( moratorium ) is made, new additional collateral for the loans included is not automatically to be brought into the collateral trust and no settlement of balances is provided. A collateral trust agreement serves in particular to make collateral that is indivisible for legal or economic reasons accessible to all lenders involved. The borrower can e.g. B. due to an obligation of equal treatment ( Pari-passu clause ) to be obliged to treat the lenders equally in terms of security, or a lender already holds collateral that should be made available to other lenders in the same way.