A master trust deed is a legal document that establishes a securitisation trust. The master trust deed sets out the terms and conditions of the securitisation transaction, including the rights and obligations of the issuer, the trustee, and the investors.
The master trust deed typically includes the following provisions:
- Definition of terms: The master trust deed defines the terms used in the securitisation transaction, such as "securitisation", "trustee", and "investor".
- Creation of the trust: The master trust deed creates the trust and appoints the trustee.
- Transfer of assets to the trust: The master trust deed sets out the terms on which the underlying assets are transferred to the trust.
- Issuance of securities: The master trust deed sets out the terms on which the securities are issued to the investors.
- Payments to the investors: The master trust deed sets out the terms on which payments are made to the investors.
- Administration of the trust: The master trust deed sets out the terms on which the trust is administered by the trustee.
The master trust deed is an important document in a securitisation transaction. It provides the framework for the securitisation transaction and sets out the rights and obligations of the parties involved.
Here are some of the applications of a master trust deed in securitisation transactions:
- To provide a framework for the securitisation transaction: The master trust deed provides the framework for the securitisation transaction by setting out the terms and conditions of the transaction. This can help to ensure that the transaction is conducted in a fair and orderly manner.
- To protect the interests of the investors: The master trust deed protects the interests of the investors by setting out their rights and obligations. This can help to ensure that the investors are treated fairly in the event of a default.
- To provide certainty and transparency: The master trust deed provides certainty and transparency to the parties involved in the securitisation transaction. This can help to reduce the risk of disputes and can also make it easier for the transaction to be marketed to investors.
Overall, a master trust deed can be a valuable tool for securitisation transactions. It can help to provide a framework for the transaction, protect the interests of the investors, and provide certainty and transparency.