Also known as a security agent. The financial institution that holds the collateral (www.practicallaw.com/3-382-3343) 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 (www.practicallaw.com/7-382-3812) in the collateral to the collateral agent on behalf of the lenders, and the collateral agent, as secured party (www.practicallaw.com/8-382-3802) under the UCC (www.practicallaw.com/1-382-3891), takes all necessary administrative and enforcement actions with respect to the collateral on behalf of the lenders.
