Collateral Agent

Definition:

In debt transactions, an agent that holds the collateral on behalf of a Syndicate of lenders, where such collateral is security for performance of the borrower’s obligations under a loan agreement. The borrower grants a security interest in the collateral to the Collateral Agent on behalf of the lenders, and the Collateral Agent takes all necessary administrative and enforcement actions with respect to the collateral on behalf of the lenders.

Also referred to as a Security Agent.

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