Security / Collateral / Bond Trusteeship


Maximize the mortgage value of your company's properties with a Mortgage/Collateral Trust Arrangement. As a corporate borrower, you may need to secure a large volume of loan obtained from several creditors. Through this arrangement, the borrower (mortgagor) delivers by way of mortgage certain property/ies to a trustee bank (BDO Trust and Investments Group) for the benefit of a group of lenders. Properties of the borrower are consolidated into a mortgage collateral pool and the creditors are issued a Mortgage Participation Certificates (MPCs) as evidence of their pro-rata share in the mortgage collateral pool.

Client Suitability  

A Mortgage/Collateral Trust is beneficial for corporations whose loan requirements will be availed from several creditor banks. Some corporations whose assets are scattered would need a mortgage/collateral trustee to consolidate their assets for collateral purposes.

Features of the Service

  • Registration of the mortgage and issuance of Mortgage Participation Certificates (MPC) to the creditors
  • Monitoring the outstanding MPCs, redeeming these as secured loans are repaid, issuing new MPCs for outstanding loans or as new loans secured by the Collateral/ Mortgage Trust are availed,
  • Trustee consistently monitors the maintenance of the required collateral value;
  • Trustee acts as custodian in keeping the credit instruments, agreements, titles to properties, insurance policies, etc. 

Benefits to Clients

Parties to the loan arrangement are assured that an objective independent party is overseeing the collateral evaluation, reporting and monitoring requirements of the mortgaged properties. The trustee protects the interests of all parties by ensuring full compliance to the provisions of the Collateral/Mortgage Trust Indenture. The corporate borrower benefits because it is able to maximize the loan value of its properties while the creditors are assured that the required collateral value is maintained at all times. 


  1. Collateral / Mortgage Trust Agreement;
  2. Notarized Secretary's Certificate on the Board Resolution authorizing the corporation to:
    • Mortgage its properties,
    • Enter into a Collateral / Mortgage Trust Agreement and appointing BDOTrust and Investments Group as Trustee and
    • Designating the authorized signatories therefore;
  3. Copy of Certificate of Filing of Articles of Incorporation and By-laws issued by the Securities and Exchange Commission with the Articles and By-Laws annexed certified true by SEC or the Corporation's Corporate Secretary;
  4. List of the directors/officers and list of stockholders holding more than 2% stockholdings of the Corporation;
  5. Two (2) Specimen Signature Cards and Customer Account Record (form to be provided by BDO Trust) duly signed/accomplished by the authorized signatory/ies of the Corporation duly and authenticated by the Corporation's Corporate Secretary;
  6. Photocopies: Picture and signature pages of acceptable identification cards (passports, driver's license, SSS, TIN etc.) of the authorized signatory/ies of the Corporation;
  7. Latest Appraisal Report covering the mortgaged properties conducted by a reputable/accredited appraisal corporation;
  8. Original Owner's Duplicate copies of Transfer Certificates of Title (TCT) which are the subject of the Collateral / Mortgage Trust;
  9. Latest Tax Declaration of subject TCTs, improvement(s) and machinery/equipment;
  10. Latest Tax Clearances covering the mortgaged properties ;
  11. Location Plan, Plant Plan, Lot Plan and Vicinity Map signed by a Geodetic Engineer;
  12. Title Verification Report;
  13. Tax Mapping Report;
  14. Certification of Right of Way by the Register of Deeds (if applicable);
  15. Contract of Lease, Assignment of Leasehold Rights (in favor of Trustee) on the properties to be mortgaged and the Lessor's Deed of Conformity to the MTI (if applicable);
  16. Original insurance policies covering the mortgaged properties and official receipts representing updated premium payments. (Insurance policies must have Mortgagee/Endorsement Clause in favor of the Trustee);
  17. Other documents required in the Collateral / Mortgage Trust Indenture