Practical Law Glossary Item 1-382-3344 (Approx. 2 pages)
Also known as a security agent. The financial institution that holds the collateral on behalf of the lenders under a syndicated loan agreement as security for performance of the borrower’s obligations under the loan agreement. The borrower grants a security interest in the collateral to the collateral agent on behalf of the lenders, and the collateral agent, as secured party under the UCC, takes all necessary administrative and enforcement actions with respect to the collateral on behalf of the lenders.