SCI Special Report – Article published in the Global ABS conference newsletter – Bondholder communications reviewed.
This article written by the ICMSA Trustee sub-committee discusses how the trustee community has worked to address concerns around bondholder meetings and voting mechanisms.
The ICMSA has produced a pro forma set of standard provisions for meetings and voting in relation to bonds/notes.
Please refer to the pro forma here.
The ICMSA has produced a suggested pro forma account bank agreement for use in structured finance transactions.
Click here to download a copy of the pro forma in word format.
The FATCA regulations have provided for the “grandfathering” of certain US-source debt securities issued before 1 July 2014.
The purpose of this bulletin is to clarify the operational flows of the notification of a Material Change affecting a security after 1 July 2014 along the chain of intermediaries from the issuer to the investor.
Trustee and Paying Agent FAQs :
Should the Principal Paying Agent Hold Bond Payments On Trust for Bondholders?
It is noted that, on certain structured finance transactions, caps on the fees, expenses and indemnification payments to certain transaction parties, including the trustee, may be sought.
In this paper, we summarise the approach taken by the major rating agencies (the “Rating Agencies”) in respect of such caps on trustees’ fees and expenses and note the issues which may arise for trustees when such fee caps are proposed.