for the benefit of creditors.
A trusted third party to guarantee the creditors’ rights
A security agent/collateral agent acts as a trusted third party for guarantee backed issues. Depending on the circumstances, the agent is responsible for holding, managing and enforcing the security (guarantees) provided to creditors.
Depending on the type of security (pledge of financial securities, assignment of receivables, cash pledges, sureties or guarantees, movable or immovable assets), it ensures that the security is put in place and maintained for the duration of the financing.
In the event of default by the borrower, the security agent intervenes to enforce the seizure or sale of the collateral provided as security.
The security agent benefits, by law, from a special pool of assets that is separate from his own assets.
The assets and proceeds from the sale of the collateral are distributed among the various beneficiary creditors in accordance with the rules set out in the intercreditor agreement, which defines its powers, responsibilities and the rules for distribution among creditors.