Trustee

Full Definition

A trustee is an independent party (typically a regulated financial institution) appointed to represent the collective interests of bondholders or other security holders. The trustee monitors the issuer's compliance with bond covenants, holds collateral on behalf of investors, and can take action to protect investor rights if the issuer defaults.

In structured finance, trustees play a critical role in ensuring that cash flows are distributed correctly and that the legal structure operates as documented.

Why It Matters

On Sails.to, licensed trustees provide an independent layer of investor protection. They verify that distributions are made according to the offering terms, monitor issuer compliance, and serve as a point of contact for investor concerns.

For CrossSecurities, the trustee ensures continuity of investor protections regardless of whether holdings are in on-chain or bankable form. This institutional oversight complements the transparency provided by blockchain infrastructure.

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