> For the complete documentation index, see [llms.txt](https://t-blocks.gitbook.io/t-blocks-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://t-blocks.gitbook.io/t-blocks-documentation/legal-framework/subfund-architecture-and-ring-fencing.md).

# SubFund Architecture & Ring-Fencing

Each SubFund within T-Blocks Trio Fund constitutes a legally separate estate. This is the cornerstone of the Fund's architecture and the primary investor protection mechanism.

#### How SubFunds work

The Management Company creates each SubFund in accordance with article 8 of the Securitisation Law 2004. Each SubFund is governed by:

1. The Management Regulations (the general rules governing the Fund as a whole), and
2. Specific Management Regulations (rules and characteristics specific to that SubFund).

In the event of conflict between the two, the Specific Management Regulations prevail.

Each SubFund may issue financial instruments in the form of Units (co-ownership participations) or Notes (debt instruments).

#### Ring-fencing: who has access to SubFund assets

The assets allocated to a SubFund are exclusively available to the following parties, in this order:

1\. Transaction Creditors — Unitholders, Noteholders, Lenders, and creditors whose claims arise in connection with the creation, operation, or liquidation of the SubFund and who are provided for in the priority-of-payments provisions of the relevant prospectus or transaction documentation.

2\. SubFund-Specific Claims Creditors — Creditors whose claims arise in connection with the creation, operation, or liquidation of the SubFund but who are NOT provided for in the priority-of-payments provisions.

3\. Non SubFund-Specific Claims Creditors — Creditors whose claims have NOT arisen in connection with the creation, operation, or liquidation of a specific SubFund (including holders of Fund Units). Their rights against SubFund assets are limited to Pro Rata Rights, allocated by the Management Company on a half-year basis across all SubFunds on an equal basis.

#### Practical implications

This architecture means:

* An investor in SubFund A has no claim against the assets of SubFund B
* A creditor of SubFund A cannot seize the assets of SubFund B
* SubFund A can be liquidated without affecting SubFund B or the Fund itself
* Once all assets of a SubFund have been realised, all claims against that SubFund are extinguished — no further recourse is available against any other SubFund, the Fund, or the Management Company

This ring-fencing is both a statutory feature of the Securitisation Law 2004 and a contractual feature of the Management Regulations.

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