Can a security trustee validly hold security interests in cross-border financing?
Security interests governed by a foreign law The use of a security trustee is not itself contradictory to Bulgarian public policy or in conflict with Bulgarian overriding mandatory rules. Thus, if a foreign law governs the security interests, a security trustee may validly hold such interests in trust to the extent the governing law permits, i.e., if such security interests are valid under the governing foreign law, then generally a Bulgarian court should recognize them. Security interests governed by the Bulgarian law There are situations where the master credit and security documents are governed by a foreign law (e.g., the laws of the State of New York, the laws of England, etc.) but a security interest is to be created and perfected as per the Bulgarian law. In this case the foreign law transaction documents often require a trustee acting in its own name but to the benefit of a syndicate of lenders and/or other secured parties to set up and hold the collateral under the transaction
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