Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Security agent definition

What does Security agent mean? A security agent is the entity appointed in secured and syndicated financings to hold, administer and enforce security for all lenders and other secured creditors through a single point of control. It is not generally defined by statute; it is a contractual label. Documents may call the officeholder a security agent or security trustee, and it will act as agent and/or trustee according to the express terms. Core functions include taking, perfecting, maintaining, releasing and enforcing security interests; entering and managing intercreditor arrangements; receiving enforcement proceeds and applying them under the agreed waterfall; and acting on majority-lender instructions. Usage...

The Security Agent in Syndicated Loans: LMA Security Trusts, Parallel Debt, Duties, Protections and Replacement (England and Wales)

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Practice notes

What is a security agent?

The security agent plays a pivotal role in syndicated transactions. In a syndicated loan, the security agent (often referred to as the ‘security trustee’) holds the transaction security on trust for the lenders and any other secured creditors, including hedging counterparties. Although commonly labelled a security agent, the function is not an agency role but a trusteeship.

Using a trust structure to hold the transaction security offers significant benefits in syndicated lending, where the creditor group usually shifts over time as lenders transfer their loans to new lenders (see Practice Note: Introductory guide to loan transfers). The key advantages are as follows:

the trust structure removes the need for security to be granted separately to each creditor, which can be costly and time‑consuming; and
the security is vested in the security trustee for the benefit of the existing secured creditors and any parties that become secured creditors in future.

This means that as the make-up of the secured creditor group changes, there is no need for...

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Web page updated on 22/05/2026

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