Guarantee Trust
Guarantee Trust
- Through this type of trust, the trustor irrevocably transfers the ownership of one or more assets to the trustee to guarantee with them and/or with their product or income, the fulfillment of certain obligations under his responsibility and/or under the responsibility of third parties, designating as beneficiaries the creditor or creditors of these, generally banking entities. In this figure, the trustor, who is a debtor of an obligation, generally credit, guarantees said commitment through the transfer of an asset.
- As examples of this type of trust, we can indicate that it is commonly established to guarantee obligations of a debtor or third party with a specific guarantee through the trust assets (they can be real estate, shares, collection rights, etc.).
- In the event of non-compliance with the guaranteed obligations by the debtor or third party, the guarantee is executed through an execution process, on the basis of which the trust assets are realized or sold so that the guaranteed obligation is paid with its proceeds. in accordance with the sales procedure provided for in the trust itself.