Service Details

Trust & Retention Account Agent (TRA Agent)

The Trust and Retention Account Agent would administer and manage the Trust & Retention Account created by the Borrower for the purposes of routing cashflows in terms of the agreed arrangement with the Lenders. Various parties involved in a typical Trust & Retention Account transaction are TRA Agent, SPV/Project/Borrower, Facility Agent / Lead Lender & Designated Bank

Scope of Service

  • Vetting and execution of Trust and Retention arrangement with the Borrower & Lenders by executing the TRA Agreement on the terms approved by the Lenders
  • Assist the Borrower to open designated bank accounts, Debt Service Reserve Account (DSRA), to be operated by either the joint signatories from TRA Agent and the Borrower or singly by the TRA Agent in accordance with the provisions of Trust and Retention Account Agreement
  • Monitoring receivable/payable/DSRA on regular basis along with repayment of Interest and Principal as per transaction documents
  • In the event of shortfall in the Receivables T&R Account to meet the upcoming debt servicing requirement, make appropriations from the DSRA account of the required amount
  • In such an event, to intimate Facility Agent / Lead Lender of such shortfalls occurring, which may be the warning signals for the upcoming default
  • In accordance with the terms of the T&R arrangement, release the balance amount to the Borrower or recommend and deploy the surplus cash in permitted investments
  • In the event of recalling of Loan in the event of default, act as per the instructions of the Security Trustee and/or the Lenders