What Is a Property Trust Fund?

Property trust is a trust business in which a trust enterprise is entrusted by a trustee to transfer or sell property to its designated or unspecified unit. The trust's property includes various movable and immovable property such as machinery, equipment, plant, warehouses and other materials. The main role of a trust enterprise in property trust activities is to communicate purchases and sales, mobilize funds, and monitor the timely delivery of prices or rents. When carrying out the property trust business, the supply unit (supplier), the demand unit (demand) and the trust enterprise must enter into corresponding economic contracts. The specific organization forms of this kind of property trust activity mainly include the following two types: (1) Financing property trust. That is, once the trust enterprise accepts this business, the supplier shall directly provide or transfer the trusted property to the acquirer in accordance with the provisions of the property trust contract, and at the same time, the acquirer shall complete the deferred payment or lease procedures, and then the trust enterprise shall provide the supplier with the lease. Pay the entire payment or rent in one lump sum, and then recover the payment or rent from the buyer on schedule. (2) Service property trust. That is, the supplier handles the transfer and discount procedures of the trust property in accordance with the provisions of the property trust contract, and deposits the discounted money as the entrusted loan fund into the trust enterprise, which is then used by the trust enterprise to loan to the demander as a payment for the goods. . As the demand-side loan is repaid in installments, the trust company shall notify the supplier to withdraw its deposited loan funds one after another. ^[1]

Property trust

Property trust vernacular explanation

Trust, also known as "trust trust", is a property management system based on assets and trust, trust and trust. For the benefit of one's own or a third party's property, a person with property gives the property he cannot manage and use to a trusted person for management or disposal. There is a certain fee charged by the person entrusted with the property right. Trust products are generally divided into two categories: property trust products and fund trust products.

Definition of Property Trust Authority

Property trust means that the client entrusts the existing assets or property rights, such as real estate, equity, credit assets, profit wealth, roads and bridges, industrial forests, gas station income, etc. to the trust company, and then transfers the trust equity to investors, which is asset securities Derivative financial products. Its income comes from the trust property itself. When an investor purchases a property trust product, since the trust property is visible, the trust income generated by the trust property is also truly visible, thereby avoiding the risks in the process of forming the property that depends on the trust income. ^[2]