Painful Bumps In The Nose

TDn Trust

The TD does not deal with personal safety, however it is brought to you because it deals with a new law on security interests, which may interest some of our readers. You will find below the first chapter of the law establishing the trust.

general provisions of the trust

the trust was established by ACT No. 2007-211 of 19 February 2007

Art. 2011 of the Civil Code.

"The trust is an operation whereby one or more components transfer property, rights or sureties, or set of assets, rights or sureties, present or future, to one or more trustees who, having separated from their own patrimony, act for a specific purpose for the benefit of one or more beneficiaries. "

Art. 2012.

- The trust is established by law or contract. It must be express.

Art. 2013.

- The trust agreement is void if it makes a donative intent to the beneficiary. This is a public policy void.

Art. 2014.

- Only constituents can be legal persons subject of right or option to tax on corporations. The grantor's rights under the trust are not transmitted for free, non-transferable for value to persons other than corporations subject to corporation tax.

Art. 2015.

- Only can trust the quality of credit institutions mentioned in Article L. 511-1 of the Monetary and Financial institutions and services listed in Article L. 518-1 of the Code, the investment firms referred to in Article L. 531-4 of the Code and insurance companies governed by Article L. 310-1 insurance code.

Art. 2016.

- The settlor or trustee may be the beneficiary or a beneficiary of the trust agreement.

Art. 2017.

- Except as otherwise provided in the trust agreement, the purchaser may, at any time designate a third party to ensure the preservation of its interests under the contract and may have the powers granted by law to the grantor.

Art. 2018.

- The trust agreement determines penalty of nullity:

"1 The property, rights or securities transferred. If they are the future, they must be determinable;

"2 The duration of the transfer, which may not exceed thirty-three years after signing the contract;

" 3 The identity of the constituents;

"4 The identity of the trustees;

" 5 The identity of the beneficiaries or, failing that, the rules for their designation;

"6 The mission of the trustee and the their powers of administration and disposition.

Art. 2019.

- To be valid, the trust agreement and its addenda are registered within one month from the date the tax department headquarters of the Trustee or to the tax non-residents if the trustee is not resident in France.

"When they are on real estate or real property rights, they are under the same penalty, published in accordance with Articles 647 and 657 of the General Tax Code.

"The transmission of rights under the trust agreement and, if the beneficiary is not designated in the trust agreement, his subsequent appointment shall, on pain of nullity, giving rise to a written instrument recorded in the same conditions.

Art. 2020.

- A national register of trusts is made according to procedures specified by Order in Council of State.

Art. 2021.

- When the trustee acts on behalf of the trust, it must be stated explicitly.

"Similarly, when the trust estate includes property or rights that the mutation is subject to publicity, it should be mentioned the name of the trustee in that capacity.

Art. 2022.

- The Trust Agreement defines the conditions under which the trustee shall report on his mission to the grantor. The Trustee shall report on his mission to the beneficiary and the third party designated pursuant to section 2017, upon request, at intervals determined by the contract.

Art. 2023.

- In its dealings with third parties, the trustee is deemed to have the broadest powers in the trust estate, unless it is shown that third parties were aware of the limitation of its powers.

Art. 2024.

- Opening a backup procedure, receivership or liquidation for the benefit of the trustee does not affect the trust estate.

Art. 2025.

- Without prejudice to the rights of creditors of the grantor hold a resale right attached to a security previously issued to the trust agreement and out fraud on the rights of creditors of the grantor, the trust estate can be seized only by holders of claims arising from the conservation or management of such heritage.

"In case of failure Heritage Trust, the assets of the grantor is the common pledge of creditors, except as otherwise provided in the trust agreement involving all or part of the liability borne by the trustee.

"The trust agreement may also limit the fiduciary obligation as a liability on the sole fiduciary property. Such a clause is binding only creditors who have expressly agreed.

Art. 2026.

- The trustee is responsible, on its own assets, for torts committed in carrying out its mission.

Art. 2027.

- If the fiduciary breach of duty or endangers interest entrusted to the settlor, the beneficiary or third party designated under Article 2017 may petition the court for the appointment of a provisional trustee or trustee to apply for replacement. The court decision granting the request shall automatically entail the divestiture trustee.

Art. 2028.

- The trust agreement may be revoked by the grantor until it has been accepted by the recipient.

"After acceptance by the beneficiary, the contract can not be modified or revoked without the agreement or decision justice.

Art. 2029.

- The trust agreement is terminated by the occurrence of the term, the achievement of purpose when it takes place before the expiry or revocation by the grantor of the option to tax companies.

"It also automatically terminate if the contract so provides or, failing that, by a court, whether in the absence of provisions prescribing the conditions under which the contract continues, the beneficiary waives all the trust. This applies even if the trustee is the subject of a liquidation or dissolution, or disappears as a result of an assignment or removal.

Art. 2030.

- When the trust agreement expires in the absence of a beneficiary, the rights, property or securities present in the trust estate are automatically returned to the grantor.

Art. 2031.

- In case of dissolution of the constituent, when the beneficiaries are not legal entities subject to corporation tax, the trust estate can be attributed to these beneficiaries in the capacity before the date the contract trust terminates. In this situation, the rights of holders entitlement under the trust shall not be transferable to inter vivos or transferable for value. "