In theory, the agent can consult with bondholders before taking action, but if this is not possible or if the agent chooses to do so, the agent may exercise his discretion to take the necessary steps to jointly protect the interests of bondholders. The most obvious benefit of the inclusion of an agent in terms of security is that it protects the rights of bondholders. Essentially, the security agent can prevent any uncoordinated action that could affect the implementation of the financial transaction. In addition, it can raise capital by investing in different creditors without having to provide a separate guarantee to each creditor, thereby reducing costs and complexity and saving time. Each creditor has a financial interest in the trust and not in individual assets. Mandaris offers the opportunity to enjoy the benefits of using a security agent in commercial structures through its professional trust company Mandaris Trustees (Malta) Ltd, a licensed trust company recognized by the Trusts and Trustees Act. Under Maltese law, a security agent also allows lenders to be modified at a later date. This is particularly important in cases where there is a consortium of lenders willing to sell their shareholding in the loan without infringing on the guarantees received during the initial installation. Maltese legislation provides for a number of security solutions in commercial and private situations, both through the civil code and the Trust Act and the Fiduciary Law (Chapter 331 of Maltese Laws). The evolution of the legislation allows for greater flexibility in security agreements, including cases where the agent is also a creditor, as in the case of structured financing or syndicated transactions where assets are consolidated within a trust and the guarantee is assumed on the whole pool and not on several assets.
Investment instruments can also be pooled and security can be implemented in a similar way. In the case of financial transactions such as securitization, it is essential that the security agent be both an experienced professional and an independent party who has the right to have access to appropriate and relevant information about the assets, in order to enable the agent to monitor the issuers` compliance with the rating authority of the obligations defined in the trust company. The agent`s task is to reduce complications and provide added value and comfort to participants. This act of trust can serve as a model for the security trust act in which the borrower provides a secured trust property as collateral for the facility granted by the lender or lenders.