Section Sch3-3 — Trusts Act 2019: Meaning of security trust

3 Meaning of security trust (1) A security trust is an express trust (within the meaning of section 12 ) if, as part of a financing arrangement, the trustee holds security over the assets of a debtor, guarantor, or another party to the arrangement (a borrower ) for the benefit of 1 or more counterparties. (2) In this clause, financing arrangement — (a) means a loan facility agreement, an arrangement for borrowing money under a debt security, or another provision of financial accommodation— (i) in which each party to the agreement, arrangement, or accommodation, (other than the borrower) is a person who falls within clause 2(1)(b)(i) to (vi) ; or (ii) that is offered under a regulated offer of debt securities (within the meaning of section 6 of the Financial Markets Conduct Act 2013) or offered under clause 19 of Schedule 1 of that Act; and (b) includes an arrangement that is in connection with, or contemplated by, an arrangement under paragraph (a).