Security and Investor Protection
Where the independent Security Trustee sits and the security package it holds.
An independent trustee stands between investors and the assets
Rather than relying on the operating company, investor security is held by an independent Security Trustee. The trustee holds the security package on behalf of all investors and can act if obligations are not met.
Investors
Provide capital into the structure
Independent Security Trustee
Holds and enforces the security for all investors
Asset-holding companies
Own the projects and grant the security
Illustrative position of the independent Security Trustee within the structure.
The security package
The collateral the Security Trustee holds on behalf of investors.
Security over shares
A pledge over the shares in the asset-holding companies, so control can pass to investors if obligations are not met.
Cession of bank accounts
Project revenue accounts are ceded to the Security Trustee, giving visibility and control over the flow of cash.
Cession of project contracts
Key contracts — offtake, supply and O&M agreements — are ceded so the value they represent is protected.
Security over the assets
Registered security over the physical generation and storage assets themselves.
Because an independent trustee holds the security, investor protection does not depend on the goodwill of the operating company. The security exists at the level of the assets and their cashflows.
Why independence matters
Executive Takeaway
An independent Security Trustee holds a real security package — shares, accounts, contracts and assets — on behalf of all investors.
Why this matters to UtCS
Delegating security to an independent trustee signals that UtCS is building an institution-grade platform, not asking for trust.
Why this matters to investors
Protection does not depend on the operating company’s goodwill; enforceable collateral sits at the level of the assets and cashflows.