Trust Preferred Transaction

Trust Preferred Transaction. A transaction in which: (a) the Borrower establishes the Statutory Trust and acquires all of the Statutory Trust's common securities; (b) the Statutory Trust acquires up to $18,042,000 of the Borrower's subordinated debentures with proceeds received from the issuance of its own trust preferred securities; and (c) the Borrower provides a limited-recourse guaranty to pay the Statutory Trust's obligations on the trust preferred securities, but only to the extent the Statutory Trust has funds... available for the payment of such obligations View More