MITCON Credensia acts as a Trust and Retention Account (TRA) Agent, administering project or transaction cash flows through a defined waterfall mechanism on behalf of lenders and other beneficiaries. The TRA structure ensures that revenues are applied in the priority agreed among the parties.
Scope of Service
- Structuring the TRA waterfall with lenders and the borrower
- Opening and operating the trust and retention accounts and sub-accounts
- Receiving project / transaction revenues into the TRA
- Applying funds across sub-accounts in the agreed order of priority
- Monitoring minimum balances and reserve accounts
- Periodic reporting to lenders on account movements
Frequently Asked Questions
What is a Trust and Retention Account (TRA)?
A TRA is a structured account arrangement through which a project or transaction's cash flows are received and applied across sub-accounts in an agreed order of priority.
What does a TRA Agent do?
The TRA Agent operates the accounts and applies funds through the waterfall on behalf of lenders, ensuring revenues are used in the agreed priority.
Is this service SEBI-regulated?
No. TRA agency is a non-SEBI regulated service and SEBI investor-protection mechanisms do not apply.
Why is a TRA used?
It gives lenders comfort that cash flows are ring-fenced and applied to debt service, reserves and operating costs in the agreed order before any surplus is released.
What are sub-accounts?
Sub-accounts within the TRA earmark funds for specific purposes such as debt service, reserves, taxes and operating expenses.
How is the waterfall enforced?
The agent applies receipts across sub-accounts strictly per the priority defined in the TRA agreement.
Have questions about TRA Agent?
Our team can walk you through structuring, fee arrangements, and compliance requirements.
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