In the case of financial transactions such as securitization, it is essential that the security agent be both an experienced professional and an independent party who has the right to have access to appropriate and relevant information about the assets, in order to enable the agent to monitor the issuers` compliance with the rating authority of the obligations defined in the trust company. The agent`s task is to reduce complications and provide added value and comfort to participants. Article 2095E, enshrined in the Civil Code, provides for the possibility of “creating guarantees for the benefit of an agent for the benefit of a present or future creditor or for the benefit of a class or class of creditors.” Maltese law recognizes that the security officer maintains security in trust in the interests of all creditors who guarantee the current and future debt, which can and can be theirs. Mandaris offers the opportunity to enjoy the benefits of using a security agent in commercial structures through its professional trust company Mandaris Trustees (Malta) Ltd, a licensed trust company recognized by the Trusts and Trustees Act. Under Maltese law, a security agent also allows lenders to be modified at a later date. This is particularly important in cases where there is a consortium of lenders willing to sell their shareholding in the loan without infringing on the guarantees received during the initial installation. The most obvious benefit of the inclusion of an agent in terms of security is that it protects the rights of bondholders. Essentially, the security agent can prevent any uncoordinated action that could affect the implementation of the financial transaction. In addition, it can raise capital by investing in different creditors without having to provide a separate guarantee to each creditor, thereby reducing costs and complexity and saving time. Each creditor has a financial interest in the trust and not in individual assets. In its August 11 decision at the Chief Controlling Revenue Authority against Costal Gujarat Power Ltd and others, the Indian Supreme Court decided to pay stamp duty on a mortgage withdrawal created by a borrower to a trustee as collateral for the financing of the borrower by a consortium of 13 lenders. Security Trustee is the organization that acts in the place of lenders because it holds the guarantee and imposes it for and on behalf of lenders for the benefit of lenders. The tax administration has appealed the Supreme Court of Justice`s decision to the Supreme Court of India.
The Supreme Court found that the security agent`s agreement indicated that Costal had separate loan agreements with the 13 financial institutions and that the mortgage instrument had only been put in place after the separate loan contracts had been executed. On the basis of this finding, the Tribunal inferred that if Costal had entered into a separate mortgage deed with each of the 13 financial institutions to secure the loans they had granted, there would have been a separate document for each transaction.