Deposit trust deed obligations require security, trustee oversight and remedies to protect deposit holders on default. The Deposit Trust Deed requires a detailed description of the deposit scheme and company undertakings to pay interest and principal; records the nature, ... Summary
Deposit trust deed obligations require security, trustee oversight and remedies to protect deposit holders on default.
The Deposit Trust Deed requires a detailed description of the deposit scheme and company undertakings to pay interest and principal; records the nature, rank and assets subject to any security, minimum cover, valuation and prohibition on further encumbrances without trustee approval; sets trustee appointment, remuneration and powers; imposes reporting covenants to protect depositors and restrict dividend payments until deposits are secured; and defines events of default and trustee remedies including possession, realisation, insurance claims and distribution of sale proceeds.
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