82,903
edits
Security trustee: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| (One intermediate revision by the same user not shown) | |||
| Line 1: | Line 1: | ||
{{a|repack|}}{{d|Security trustee|/sɪˈkjʊərɪti/ /trʌsˈtiː/|n|}}One who holds the security in a [[repackaging programme]] for the benefit of itself and the other [[secured parties]]. | {{a|repack|}}{{d|Security trustee|/sɪˈkjʊərɪti/ /trʌsˈtiː/|n|}}One who holds the security in a [[repackaging programme]] for the benefit of itself and the other [[secured parties]]. | ||
{{Security trustees as vogons}} | {{Security trustees as vogons}} | ||
The security trustee equivalent of orders signed in triplicate, sent in, sent back, queried, lost, found, subjected to public inquiry, lost again, and finally buried in soft peat for three months and recycled as firelighters is “subject to being satisfactorily indemnified, prefunded and/or secured before being obliged to take any action whatsoever” and this is the standard operating procedure for any trustee. It is a good way of ensuring one ''appears'' to be there, doing a sound job, protecting everyone’s interest, whilst not really being obliged to to anything beyond collecting a fee. | |||
We do not scold this approach: we endorse it. The security structure of a repackaging programme is a sinecure, designed only to save the blushes of learned counsel should the limited recourse ringfencing that they grandly erected around each series turns out not to work. | |||
we are less concerned with normal, non-repackaging style, secured bond issues — outside the wider [[securitisation]] world they are pretty rare — but suspect the same goes. Trustees do not expect to have to ''do'' anything, and generally speaking they will be right. | |||
===On not getting carried away about the security package=== | |||
{{limited value of security in repack}} | |||
{{sa}} | |||
*[[Payment of liabilities]] | |||
*[[Ring fencing]] | |||