Deed of trust,
Definition of Deed of trust:
A deed of conveyance creating and setting out the conditions of a trust.
Borrowing: Agreement under which a borrower (the trustor) conveys (see conveyance) the right of ownership (title) of his or her assets or property to a trustee as a security for the sum advanced by a lender (the beneficiary of the trust). If the loan is paid back as agreed, the trustee reconveys the title to the trustor. If not, the trustee has the legal power to sell (liquidate) the assets or property at a public sale to repay the loan. In a deed of trust (unlike in a deed of mortgage) the borrower normally may not apply to courts for an injunction to stop the liquidation. Also called declaration of trust.
General: Agreement between three parties: a trustor (or grantor), a beneficiary, and a trustee, to establish a trust.
Securities: Alternative term for bond indenture.
How to use Deed of trust in a sentence?
- It is not appropriate to focus on particular sentences and to subject them to the kind of legalistic scrutiny that might perhaps be appropriate in the case of a statutory instrument, a charter party or a trust deed.
- When making a big deal it can be a good idea to get a deed of trust so that everything is very official.
- Investor Warren Buffet made some parts of his fortune at the beginning of his career through deed of trust with other companies to establish an agreement between him and his trustees.
- When you borrow a large amount of money you will likely sign a deed of trust so there is a record of the loan.
Meaning of Deed of trust & Deed of trust Definition