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The Collateral Trust Agreement is a crucial document in Philippine financial transactions where assets need to be held in trust as security for obligations. It is commonly used in project financing, syndicated lending, and structured finance transactions where multiple creditors require a secure and managed approach to holding collateral. The agreement must comply with Philippine banking and trust laws, particularly the General Banking Law of 2000 and BSP regulations. It details the appointment of a trustee (typically a Philippine bank or trust company), the transfer and management of collateral, the secured obligations, and enforcement mechanisms. This type of agreement is particularly valuable in complex financing arrangements where centralized collateral management is needed, or where multiple secured parties require equal and ratable security interests in the same collateral pool.

1. Parties: Identifies the Trustor/Grantor, Trustee, and Beneficiary/Secured Party

2. Background: Describes the underlying transaction, purpose of the trust arrangement, and basic premises of the agreement

3. Definitions: Defines key terms used throughout the agreement, including 'Collateral', 'Secured Obligations', 'Event of Default', etc.

4. Appointment of Trustee: Formal appointment of the trustee and acceptance of the trust

5. Declaration of Trust: Establishes the trust relationship and defines its purpose

6. Collateral: Detailed description of the assets being placed in trust, transfer mechanisms, and maintenance requirements

7. Secured Obligations: Specifies the obligations being secured by the collateral trust arrangement

8. Rights and Duties of Trustee: Comprehensive listing of trustee's powers, responsibilities, and standard of care

9. Representations and Warranties: Standard representations from all parties regarding capacity, authority, and collateral ownership

10. Covenants: Ongoing obligations of the parties, particularly regarding maintenance and preservation of collateral

11. Events of Default: Defines circumstances constituting default and consequences

12. Enforcement Rights: Procedures and rights for enforcing security interest upon default

13. Fees and Expenses: Details of trustee compensation and expense reimbursement

14. Term and Termination: Duration of the agreement and termination provisions

15. General Provisions: Standard boilerplate clauses adapted for Philippine law