Trustee

An active player to protect your interest

The Trustee is the legal representative of the holders of ABS notes or covered bonds issued under Law 130/1999.

The appointment of a Trustee is not governed by the civil code and is not requested by law, but nowadays is part of the best practices because it has two distinct advantages: it provides flexibility to issuers and protection to noteholders.

The Trustee protects the rights of the noteholders as set out in the transaction documents.

Moreover, it coordinates the actions that noteholders may undertake to protect their interest, preventing any individual and uncoordinated actions that may prejudice the performance of the transaction.

The Trustee may or shall exercise some power, rights, duties or give its consent if certain events occur, for instance:

• buy-back of receivables by the Originator;
• proposed formal or technical amendments to the transaction documents;
• specific trigger events.

Consequently, the choice of having a skilled and professional Trustee benefits the transaction as a whole.