Practical Law Glossary Item 3-382-3885 (Approx. 2 pages)
In the capital markets context, a trustee is also referred to as the indenture trustee. The trustee is a financial institution with trust powers (for example, a commercial bank or trust company) that is appointed by an issuer of debt securities under the terms of the related indenture to enforce the terms of that indenture. The trustee acts as the agent of the holders of the debt securities and handles all administrative aspects of the securities and the indenture, including ensuring that the issuer complies with the terms of the indenture.
In the bankruptcy context, a trustee is also known as the bankruptcy trustee. The official representative of the estate appointed to represent the interest of creditors and administer the estate during the bankruptcy proceedings. The role of the trustee varies under the different chapters of the Bankruptcy Code.