Collateral is mortgaged in favor of UCPB as Trustee for and in behalf of one or several creditors.
Mortgage Trust Indenture (MTI) is a contractual agreement used to secure the obligations of the borrower with several lenders. The property(ies), which comprises the MTI pool of assets, is/are mortgaged in favor of UCPB-TBG as Mortgage Trustee in behalf of the several lenders giving each lender a pari-passu share in the collateral.
A Mortgage Participation Certificate (MPC) is issued by the Trustee in favor of each lender as an evidence of the lender’s participation in the MTI pool of assets.
- Maximize use of Collateral/Property – The MTI arrangement makes it possible for the same property to stand as collateral for several loans from different financial institutions on a pari-passu basis.
- As a protective financial instrument for both the borrower and lender(s)
- Borrower – property(ies) is/are mortgaged as loan security; it does not part with the possession and enjoyment of properties but merely allows the recording of the Agreement with the proper Registry of Deeds.
- Lenders – enjoy clear protection of collateral. It places all lenders on equal footing as they share pro-rata in collaterals and enjoys a first lien on the sale of property in case of default.
- Trustee – monitors and enforces compliance with the terms and conditions embodied in the MTI Agreement.
- Ease of Administering Loan and Collateral – The Trustee undertakes the collateral checking, reporting and monitoring. Trustee assures the adequate protection of collateral. Sees to it that the following are updated and submitted:
- real estate taxes, tax declarations and tax clearances;
- insurance policy covering the MTI assets and corresponding insurance premium; and
- appraisal report of the MTI assets.
|Documentation||Mortgage Trust Indenture|
UCPB-TBG – MortgageTrustee
|Miscellaneous Charges||Incidental fees are chargeable to the borrower and/or lender(s).|
If you need more information on Mortgage Trust Indenture, please contact the UCPB branch most convenient to you or UCPB’s Trust Banking Group associates: