What is an executor vs a trustee?
- Executors and trustees have separate powers and duties
- The executor handles estate administration by following a will, while the trustee handles trust administration in accordance with a trust agreement
- An executor can be a trustee and vice versa
What are the rights of a trustee?
- Payment. Current beneficiaries have the right to distributions as set forth in the trust document.
- Right to information. Current and remainder beneficiaries have the right to be provided enough information about the trust and its administration to know how to enforce their rights.
- Right to an accounting. ...
- Remove the trustee. ...
- End the trust. ...
What is a trust and being a trustee?
Being a Trustee of a Family Trust. Under California law, a trust is a legal relationship in which one person, a trustee, holds title to a property to benefit another person called the beneficiary. The trust creator (trustor) is the property owner who creates the arrangement and puts their property in a trust.
What does trustee in succession mean?
successor trustee. individual named in the terms of a trust to assume the role of trustee should the originally appointed trustee be unable or unwilling to assume or continue in the role; for living trusts, the individual named in the trust to succeed as trustee upon the owner's death. Estate Planning and Inheritance Glossary
What is the purpose of an indenture?
An indenture is a legal and binding contract usually associated with bond agreements, real estate, or bankruptcy. An indenture provides detailed information on terms, clauses, and covenants. There can be a few different types of indentures and many different types of indenture clauses.
What does indenture mean in real estate?
Indenture is a term that is subject to different meanings. In the context of real property, it refers to a type of real property deed in which two parties agree to continuing mutual obligations. One party may agree to maintain the property, while the other agrees to make periodic payments.
What is an indenture person?
noun. : a person who signs and is bound by indentures to work for another for a specified time especially in return for payment of travel expenses and maintenance.
What is bond indenture and trustee?
A bond trustee is hired by a bond issuer and oversees the implementation of a bond or trust indenture, which is a contract between a bond issuer and a bondholder. The trustee has a fiduciary responsibility to act on behalf of the issuer, rather than in its own interests.
Is indenture the same as a deed?
Per the Society of American Archivists online glossary, a deed is “a document that details an agreement relating to the transfer of ownership of property, especially real property, from one individual to another.” An indentureindentureAn indenture is a legal contract between two parties, particularly for indentured labour or a term of apprenticeship but also for certain land transactions.https://en.wikipedia.org › wiki › IndentureIndenture - Wikipedia is “a formal agreement between two or more parties, usually a written document with a ...
What is the opposite of indenture?
Antonyms. exempt refrain disoblige unlash unstrap untie unfasten. concavity cleft concave shape incurvation incurvature.
Why is it called indentured?
The term comes from the medieval English "indenture of retainer"—a legal contract written in duplicate on the same sheet, with the copies separated by cutting along a jagged (toothed, hence the term "indenture") line so that the teeth of the two parts could later be refitted to confirm authenticity (chirograph).
What were the three types of indentured servants?
IndenturedIndenturedAn indenture is a legal contract between two parties, particularly for indentured labour or a term of apprenticeship but also for certain land transactions.https://en.wikipedia.org › wiki › IndentureIndenture - Wikipedia servants were men and women who willingly signed a contract in which they agreed to work for a certain number of years to compensate for their voyage to America. Three different types of indentured servant agreements existed in the 18th century: free-willers, King's passengers, and redemptioners.
What is an example of an indentured servant?
Some indenturedindenturedWhat Is an Indenture? Indenture refers to a legal and binding agreement, contract, or document between two or more parties. Traditionally, these documents featured indented sides or perforated edges.https://www.investopedia.com › terms › indentureIndenture Defined - Investopedia servants served as cooks, gardeners, housekeepers, field workers, or general laborers while others learned specific trades such as blacksmithing, plastering, and bricklaying, which they often parlayed into future careers.
Who holds the bond indenture?
Trustee#2 – Trustee/ Fiscal Agent The trustee is a bank or financial institution that holds the bond indenture. Trustee roles are primarily providing financial and legal assistance to bondholders.
What is the role of a bond trustee?
The issuer's and the bond trustee's duties are set out in a contract called a trust indenture (sometimes called a bond indenture). In general, the bond trustee collects the funds to pay scheduled interest and principal on the bonds and receives financial and other periodic reports from the issuer.
What is the difference between a bond and a trust?
A final thing to keep in mind is that with a trust fund, you are on your own, both financially and legally. A freight brokerfreight brokerA freight broker is an intermediary between a shipper and a freight service provider. Freight brokers can specialize in certain types of freight, such as equipment hauling on lowboys, oversize, bulk tanker, auto, or other types of freight transportation.https://en.wikipedia.org › wiki › Freight_brokerFreight broker - Wikipedia bond is backed by a bonding company with its own liquidity, which can help repay claims and even help you fight the claim if it believes you are not at fault.
What does indenture of Mortgage meaning?
Definition: An indentureindentureAn indenture is a legal contract between two parties, particularly for indentured labour or a term of apprenticeship but also for certain land transactions.https://en.wikipedia.org › wiki › IndentureIndenture - Wikipedia is a legally binding bond or loan document in which two parties agree on a set of conditions and loan terms requiring the borrower to pay the lender a series of principle and interest payments over time.
What is indenture of lease?
In consideration of THE LESSEE having agreed to comply with the terms and conditions contained in this Lease Deed including to pay to THE LESSOR Monthly Rent and all other charges under this Lease Deed, THE LESSOR has agreed to enter into this Lease Deed with THE LESSEE.
Why is it called indentured?
The term comes from the medieval English "indenture of retainer"—a legal contract written in duplicate on the same sheet, with the copies separated by cutting along a jagged (toothed, hence the term "indenture") line so that the teeth of the two parts could later be refitted to confirm authenticity (chirograph).
What is bond indenture and what does it contain?
Bond Indenture is a core legal document that safeguards the right of both investors and issuers. It contains all information related to the bond, along with the Rights and responsibilities of both issuer and bondholders.
What is an indenture trustee?
indenture trustee means Wells Fargo Bank, National Association, a national banking association, not in its individual capacity but solely as Indenture Trustee under the Indenture, and any successor Indenture Trustee under the Indenture. indenture trustee means the Indenture Trustee.
What is an institutional trustee?
indenture trustee or “ institutional trustee ” means the Indenture Trustee. indenture trustee or " institutional trustee " means the Indenture Trustee. indenture trustee means the Person acting as Indenture Trustee under the Indenture, its successors in interest and any successor trustee under the Indenture.
What happens if a co-trustee dies?
If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor trustee. The Indenture Trustee shall not have any ...
Who is Wilmington Trust Company?
Wilmington Trust Company as Indenture Trustee, Institutional Trustee, Delaware Trustee, and Guarantee Trustee for Mercantile Bancorp Capital Trust I, and (iii) US Capital Funding V Ltd.4. On the Appointment Date, pursuant to section 1103 (a) of the Bankruptcy Code, the Committee selected both K&E and Klehr Harrison Harvey Branzburg LLP as its co-counsel.
What is an indenture trustee?
Indenture trustees act for the benefit of the investors in a company’s bonds. They perform this role for virtually all companies that issue bonds, whether in the United States or abroad. The existing scholarship on their duties focuses on the post-default scenario.
When was the pre-default indenture act enacted?
The indenture trustee’s pre-default duties have not been seriously re-examined since enactment of the Trust Indenture Act of 1939, although the bond market has changed dramatically since then.
Can activist investors sue indenture trustees?
Activist investors are also suing indenture trustees for losses on their bonds, alleging they should have taken pre-default actions to protect the bonds. To avoid the risk of liability, indenture trustees should know how they should discharge their pre-default duties.
Do indenture trustees have fiduciary duties?
By far the dominant view—and the view that comports with existing law and the plain language of indentures—is that indenture trustees have no pre-default fiduciary duties to investors. Rather, their duties are ministerial and limited to the usually administrative functions specified in the indenture. Since the 2007-08 financial crisis, however, ...
Can an indenture trustee refuse to take a demanded action?
Absent instructions from the requisite investor threshold contractually required to direct the indenture trustee, the trustee should have the right to refuse to take a demanded action. In case of doubt, an indenture trustee could itself seek instructions.
What is a trust indenture?
A trust indenture is an agreement used during the signing of a bond contract between a bond issuer and a trustee that documents the terms and conditions governing the trustee's conduct as well as the trust beneficiaries' rights. The trust indenture represents the interests of the bondholder by underlining a set of rules and responsibilities that each entity party to the agreement is obliged to follow. A trust indenture also includes certain directives regarding the circumstances that may lead to a default and the processes that need to be followed thereupon.
What are the attributes of a bond?
The various attributes of the bond, such as maturity date, face value, coupon rate, payment schedule, and reason for the bond issue.
Who hires trustees for credit indentures?
In some credit indentures, a trustee may be hired by a bond issuer. When a trustee is involved a trust indenture will also be needed. A trust indenture is similar to a bond indenture, except it also details the trustee’s responsibilities in overseeing all of a bond issue’s terms.
What Is an Indenture?
Indenture refers to a legal and binding agreement, contract, or document between two or more parties. Traditionally, these documents featured indented sides or perforated edges. Historically, indenture has also referred to a contract binding one person to work for another for a set period of time ( indentured servant ), particularly European immigrants. In modern-day finance, the word indenture most commonly appears in bond agreements, real estate deals, and some aspects of bankruptcies .
What is included in a bond indenture?
A bond indenture also contains all the terms and conditions applicable to the bond issue. Other critical information included in the indenture are the financial covenants that govern the issuer and the formulas for calculating whether the issuer is within the covenants (usually ratios based on corporate financials).
What is a credit indenture?
A credit indenture is the underlying contract agreement that details all of the provisions and clauses associated with a credit offering. In non-secured, uncollateralized bond offerings, these indentures can also be called debentures .
What is an indenture contract?
Key Takeaways. An indenture is a legal and binding contract usually associated with bond agreements, real estate, or bankruptcy. An indenture provides detailed information on terms, clauses, and covenants. There can be a few different types of indentures and many different types of indenture clauses.
What is an indenture agreement?
Indenture refers to a legal and binding agreement, contract, or document between two or more parties. Traditionally, these documents featured indented sides or perforated edges. Historically, indenture has also referred to a contract binding one person to work for another for a set period of time ( indentured servant ), ...
Where did the term "indenture" come from?
Indenture is a term that originated from England. In the U.S., there can be several types of indentures, all typically involved with debt agreements, real estate, or bankruptcy.
What is a trust indenture?
A trust indenture is a contract entered into by a bond issuer and an independent trustee to protect the interests of bondholders. The Trust Indenture Act was intended to address flaws in the trustee system. The Securities and Exchange Commission (SEC) administers the TIA.
What is the purpose of the Trust Indenture Act?
Congress passed the Trust Indenture Act of 1939 to protect bond investors. It prohibits the sale of any debt securities in a public offering unless they are issued under a qualified indenture. 2 The Securities and Exchange Commission (SEC) administers the TIA.
What Is the Trust Indenture Act (TIA) of 1939?
The Trust Indenture Act (TIA) of 1939 is a law that prohibited bond issues valued over $10 million from being offered for sale without a formal written agreement (an indenture ). Both the bond issuer and the bondholder must sign the indenture, and it must fully disclose the particulars of the bond issue. It also requires that a trustee be appointed for all bond issues so that the rights of bondholders are not compromised.
Why was the Trust Indenture Act created?
The Trust Indenture Act was introduced as an amendment to the Securities Act of 1933 to make indenture trustees more proactive in their roles. It puts some obligations directly on them, such as reporting requirements. TIA was intended to address flaws in the trustee system.
What is a TIA?
The Trust Indenture Act (TIA) of 1939 is a law that prohibited bond issues valued over $10 million from being offered for sale without a formal written agreement (an indenture ). Both the bond issuer and the bondholder must sign the indenture, and it must fully disclose the particulars of the bond issue. It also requires that a trustee be appointed ...
What is TIA in bondholders?
TIA was intended to address flaws in the trustee system. For example, trustees’ passive actions blocked collective bondholder action before the TIA. Individual bondholders could theoretically force action but often only if they could identify other bondholders who would act with them. Collective action was frequently impractical given the wide geographical distribution of all bondholders of an issue. With the act, trustees are required to make a list of the investors available so they can communicate with each other.
What is a debt issuer's obligation to disclose the terms under which a security is issued?
Debt issuers are expected to disclose the terms under which a security is issued with a formal written agreement known as a trust indenture. A trust indenture is a contract entered into by a bond issuer and an independent trustee to protect the interests of bondholders. The SEC must approve this document.
