It is the fiduciary business through which the obligations of a debtor in favor of one or more creditors are protected, through the allocation of an asset to said purpose and the stipulation of a private and agile procedure to obtain the satisfaction of the credit in case of default.
For this purpose, the constituent transfers the ownership of one or more assets to the trust company as an irrevocable commercial trust, in order to guarantee the fulfillment of obligations that the trustor or third parties are responsible for, and in favor of one or more creditors.
In case of non-compliance, the sale or auction of the good or goods is carried out so that the unfulfilled obligation is satisfied with its product, or in its place voluntary delivery by the debtor and acceptance of something by the creditor in lieu of fulfillment of the agreed obligation is carried out. In the case of cash flows related to the guarantee, the payment of the unfulfilled obligation is made by allocating the proceeds to the respective payment.
It is the responsibility of the Secured Creditor and in his own interest, to notify the Trustee, when there is a breach of the obligation protected with the trust.
The following types of warranty trusts may be set up:
It is the fiduciary business that consists of the irrevocable transfer of the ownership of one or more goods as a commercial trust or the delivery in an irrevocable fiduciary order, in order to guarantee the fulfillment of the obligations of the settlor or third parties, in favor of one or more creditors.
It is the fiduciary business that consists of the transfer or irrevocable delivery to a trust company of a future flow of resources resulting from a transfer of economic rights that are used to guarantee the fulfillment of an obligation and to service the debt.
For additional information on trusts in Guarantee, click here to consult our blog entry on this topic.
It is a contract by which the trustor delivers goods and / or money to the trustee so that in life he or she may continue to manage and dispose of them according to the guidelines set out by the former. Upon the death of the trustor, the contract becomes irrevocable and will be administered by the trustee in accordance with the rules or instructions established by the owner; carrying out the delivery of assets to the designated persons and under the conditions agreed to in the contract.
For additional information on Probate Trusts, click here to consult our blog entry on this topic.