Trustee role rewritten by court?

Pic© Sam Howzit

Category: CMBS ABS

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A ruling by the UK High Court could have significant implications for trustees, potentially redefining their role in securitisation. The court's ruling confirms that a trustee cannot outsource decision making and must take responsibility for exercising the discretion that deal documents allow them, although questions do remain.

GLAS Trust Corporation was brought into the Fairhold Securitisation (FHSL 2006-1) as a replacement trustee, at the behest of bondholders.

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