Your financial ally at all times
This type of trust is a mechanism by which the trust creator (borrower) contributes assets or rights to the trust to serve as a guarantee for a third party who has granted a credit or financing (lender), and who is the primary trust beneficiary.
- Trust creators and beneficiaries can be individual or corporations.
- The trust indenture includes and out-of-court settlement clause (process of sale and/or foreclosure of the property placed in trust) in the event of a default on payment obligations.
- Legal certainty for the primary trust beneficiary, because the trustee will apply all of the trust equity to cover obligation in the event of a default by the trust creator on the loan or financing extended.