Bankruptcy Law

A trust is a transaction whereby one or more settlors transfer present or future assets, rights or security interests, or a set of assets, rights or security interests, to one or more trustees, who, keeping them separate from their own assets, act for a specific purpose on behalf of one or more beneficiaries . It constitutes a contract in everyday use, insofar as the trustee has not yet fulfilled  …

Security trust agreement

A trust is a transaction whereby one or more settlors transfer present or future assets, rights or security interests, or a set of assets, rights or security interests, to one or more trustees, who, keeping them separate from their own assets, act for a specific purpose on behalf of one or more beneficiaries . It constitutes a contract in everyday use, insofar as the trustee has not yet fulfilled his obligation to retransfer the assets to the beneficiary on the day of the court ruling. 

The Ordinance of 18 December 2008  expressly excluded it from the scope of Article L. 641-11-1 of the Commercial Code concerning the continuation of ongoing contracts . Consequently, the receiver cannot demand the continuation of the trust contract or the agreement to make assets or rights available, nor can he request their termination. Nor can the creditor put the trustee on formal notice to decide whether or not to continue the contracts, and termination of the contracts does not follow from the creditor's failure to respond to such formal notice. 

However, if the debtor is the settlor and sole beneficiary of a trust agreement, the opening or pronouncement of a court-supervised liquidation in respect of the debtor automatically terminates the trust agreement and returns to the debtor's patrimony any rights, assets or security interests present in the trust patrimony .

Ordinance 2008-1345 of 18 December 2008 concerning the reform of the law governing companies in difficulty.

Bankruptcy Law

802. Security trust agreement

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Les notions juridiques connexes

802. Security trust agreement

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise