Please read our discussions on MMRA and DSRA in the following topics, which have an in-depth analysis of MMRA and DSRA requirements in project funding and project methodology. The cash flow prioritization method will give a better picture of the company`s cash position. It will also help to analyze the management surplus/deficit of the various reserve accounts. In the following topics, a cash flow calculation based on the Escrow waterfall is discussed. ===================================================================================================================================================================================================================================================================================================================================================================== Treuhand- und AufbewahrungskontoEin einfaches Treuhandkonto ist nur ein Pass-Through-Konto, über das alle Mittel (Eigenkapital, Schulden, Einnahmen und Ausgaben) des Unternehmens weitergeleitet werden. However, the lender has no difference between the trust account and the retention account and the escrow-Trust and Retention (TRA) MECHANISM TRA account was a common feature in financing infrastructure projects. The objective is to protect project lenders from credit risk (risk of default of debt service) by isolating the cash flow of the project company. This is done by transferring control of future cash flow from the hands of borrowers (project company) to an independent agent, the tra agent, duly mandated by the lenders. 2. Infrastructure projects are implemented through a separate company created for this purpose (“zweckgesellschaft” – SPV) and the shares of the SPV would normally be held, among other things, by the project sponsors. The cash flow of the SPV (project company) is subject to a TRA agreement.
As part of this agreement, the lender, borrower and TRA representative will enter into a three-part agreement that all project revenues will be paid into a single account managed by the designated TRA agent. Lenders establish, in agreement with the borrower, a detailed mandate for the TRA agent for the regular transfer and use of the funds available in the TRA. The mandate essentially outlines the nature and purpose of various payments, including debt servity to lenders. In accordance with their mandate, payment to lenders is made directly by the TRA representative without the borrower`s intervention. By operation, THE TRA can be subdivided into several sub-TRAs dedicated to separate expense/end managers. With cash flows in several currencies, there could also be separate TRAs with the same agent or various TRA agents for processing cash flows in different currencies. Thus, on behalf of the lenders, the TRA agent acts as an agent and ensures that the cash flows of the borrower or the project company are exclusively accessible in accordance with the mandate.