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Guarantee of Assets and/or Flows
ESCROW
Real Estate Bridge Trust
Real Estate Development Trusts
Project Cash Flow Trust
Shareholders Agreement
Family Trust
Debt Management

Guarantee of Assets and/or Flows

CASH FLOW TRUST

ASSETS TRUST

MIXED TRUST

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It consists of a trust whose purpose is to serve as a guarantee for the fulfillment of obligations that a company ("settlor") has with one or several third parties ("trustees"). These obligations may include repayment of financing, bond issues, compliance with agreements, among others.

Equity may be composed of:

- Assets: Includes all kinds of assets, such as land, buildings, shares, etc.
This structure is widely used by the industrial and agricultural sectors, which grant their main assets (industrial plants or agricultural land, for example) as collateral for long-term financing.

- Flows: It is composed of certain collection rights and cash flows from different income of the trustor. In case the guaranteed obligations include the payment of a financing, the amounts corresponding to the installments can be retained for the payment of the same, releasing the remainder to the trustor.
This structure is widely used by the retail sector through the assignment of credit card flows or lease agreements.

- Mixed: It can contain both Assets and Flows and has the same operability of these structures. This operation can be composed of a single trust or two trusts (one for Assets and one for Flows).
This structure is usually applied in Project Finance and in financing operations in which the highest level of guarantees is required.

Escrow

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The purpose of this structure is to provide confidence in an asset purchase and sale transaction (usually companies) so that it can be carried out with greater transparency and ease.

The equity is composed of the assets to be sold (granted by the seller) and the price of the assets (granted by the buyer), which are kept in the equity until certain conditions agreed by the parties are met. Once these conditions are met, the assets are transferred to the buyer and the price is transferred to the seller.

- Purchase of companies: This structure facilitates the purchase of companies since the parties do not exchange shares and cash flows until the final auditor's report is available. Likewise, the trust ensures that the conditions established by the parties, once the auditor's report is received, are fulfilled.

- Purchase of real estate: This structure is also used in the purchase of real estate to strengthen the guarantees of the parties in conjunction with the contract or earnest money agreement.

Real Estate Bridge Trust

Real Estate Bridge Trust (prior to the development of a real estate project).

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The purpose of this structure is to guarantee that a piece of land will be used for the realization of a real estate project while the necessary studies and municipal procedures are being carried out.

The property is composed of the land in question, which was acquired by the developer/builder (trustor) thanks to financing granted by an investor (trustee), who will participate in the real estate project.

This structure can be modified to form part of the real estate trust, which will facilitate the administration of the entire project itself.

Real Estate Development Trusts

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The purpose of this structure is to ensure that the development of a real estate project is carried out with transparency, ease and order, and to make all project payments (construction costs, financing payments, etc.). However, the responsible before the purchasers will continue to be the developer/builder (trustor) of the project.

The patrimony is composed of all the assets that are part of a real estate project, having the possibility of structuring two trusts instead of one. In this alternative, there is an Asset Trust composed of the land, plans, insurance, among others; and a Flows Trust composed of the settlor's collection rights (monetary contributions from the developer/builder, payments from the purchasers, among others).

In this structure it is necessary to have a bank "sponsor" of the project and a supervisor chosen by the latter, who approves the monetary disbursements according to the progress of the work.

Project Cash Flow Trust

Project Cash Flow Trust

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The purpose of this structure is to ensure that the development of a real estate project is carried out with transparency, ease and order, and to make all project payments (construction costs, financing payments, etc.). However, the responsible before the purchasers will continue to be the developer/builder (trustor) of the project.

The patrimony is composed of all the assets that are part of a real estate project, having the possibility of structuring two trusts instead of one. In this alternative, there is an Asset Trust composed of the land, plans, insurance, among others; and a Flows Trust composed of the settlor's collection rights (monetary contributions from the developer/builder, payments from the purchasers, among others).

In this structure it is necessary to have a bank "sponsor" of the project and a supervisor chosen by the latter, who approves the monetary disbursements according to the progress of the work.

Shareholders Agreement

Shareholders Agreement

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It consists of a trust whose purpose is to manage the shares of a company as established in a Shareholders' Agreement, ensuring that what is agreed in this agreement is fulfilled.

The assets are composed of the company's shares, which are assigned by a group of shareholders. Likewise, these shareholders, or whoever they define, form a committee whose decisions are regulated by the agreement and instructs The Fiduciary on how to manage the equity.

Family Trust

Family Trust

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It is a structure similar to the Shareholders' Agreement Trust, in that the shares owned by a family group in one or several companies are administered for the benefit of the shareholders (the family group). The objective of the structure is to keep the family estate together (as a single shareholding package) and to ensure that the heirs of the initial shareholders will benefit from the trust without having to receive the shares, i.e., they will only receive the trust rights of the operation (there is no return of the estate) and, therefore, these heirs will not be able to dispose of the shares.

The estate is composed of the shares and/or funds of the company, which are administered according to the instructions of a committee.

Debt Management

Debt Management

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Unlike other trusts where the trustor is usually the one who assumes the debt to the trustee, in this structure it is the Management Trust that takes on the debt directly, i.e., it subscribes the credit, promissory note or leasing contract in place of the trustor. In this way, compliance with the obligations generated by this financing is isolated from the trustor and is maintained solely in the autonomous patrimony.

Two trusts are constituted for this operation:

- Management Trust: The trustor assigns to this trust assets and/or collection rights and flows. Then, the trust subscribes a credit facility to a lender (trustee), which will be guaranteed by the Guarantee Trust.

- Guarantee Trust: The Management Trust assigns its patrimony (assets and/or collection rights and flows) to constitute this new trust, which will guarantee and/or pay the installments of the credit facility.

The first trusts of this nature were developed by La Fiduciaria in 2010 and were applied to power transmission line projects. Subsequently, the structure was applied to the development of shopping and business centers.
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