What is a Collateral Trust Certificate?
Mortgage trusts are all kinds of trusts that the settlor uses the collateral as trust property to obtain certain services. The client will mortgage his bills, stocks, bonds and other movable or real property to the trust institution in order to obtain loans, credit guarantees, etc. from the trust institution. Such as trust mortgage loans, secured company bond trusts, and other trust businesses that are secured by the trust institution on the condition of mortgages are all mortgage trusts. Before the client fails to settle the debt, the property right of the mortgaged property belongs to the trust institution. If the debt cannot be settled on time, the trust institution has the right to deal with the mortgaged property and pay it on its behalf. [1]
Mortgage trust
discuss
- Chinese name
- Mortgage trust
- Foreign name
- Mortgage Trust
- Business
- Borrowed funds for traditional trust business
- Features
- No transfer of bill ownership
- Mortgage trusts are all kinds of trusts that the settlor uses the collateral as trust property to obtain certain services. The client will mortgage his bills, stocks, bonds and other movable or real property to the trust institution in order to obtain loans, credit guarantees, etc. from the trust institution. Such as trust mortgage loans, secured company bond trusts, and other trust businesses that are secured by the trust institution on the condition of mortgages are all mortgage trusts. Before the client fails to settle the debt, the property right of the mortgaged property belongs to the trust institution. If the debt cannot be settled on time, the trust institution has the right to deal with the mortgaged property and pay it on its behalf. [1]
- classification
- According to the collateral, it can be divided into three cases:
- Bill mortgage trust
- The difference between bill discounting and bill discounting is that no transfer of bill ownership occurs. Instead of buying bills, the bank's trust department uses bills as collateral for issuing loans. When the loan is redeemed, the mortgaged bills are still collected by the bearer.
- 2. Mortgage Trust
- The client uses raw materials, equipment, and real estate as collateral, and the bank trust department issues loans accordingly. When the loan expires, the client will redeem the mortgaged property.
- 3. Securities Mortgage Trust
- The client holds the securities at the price and applies for a securities mortgage loan to the bank's trust department. The bank trust department determines the loan ratio based on the creditworthiness of the securities.