Articles
Lending to Trusts
by Jeff Kenny
Jared Ormsby
July 2010
New Zealand has a large number of family trusts per capita. Lending to trustees and taking guarantees and securities from trustees is becoming very common. Unfortunately, a trust can mean big problems for lenders wishing to enforce their rights. To see why this is we'll look at how trusts work and then look at how this impacts on unsecured lenders and secured lenders.
But first, 3 key things to keep in mind.
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