TRUST IN THE COOPERATIVE WORLD
Article Sidebar
Main Article Content
Abstract
Trust agreements have become a widely used tool among savings and credit cooperatives to finance members’ activities. Their appeal lies in advantages that surpass traditional mortgages, such as lower formalization costs and greater flexibility. This instrument, regulated by national legislation (e.g., the Commercial Code), allows securing multiple loans during the contract term, making it particularly useful for diverse operations. Furthermore, trusts provide solutions for inheritance matters: if the member contributing the property passes away, the contract can specify how assets will be transferred to beneficiaries. This avoids lengthy and costly probate processes, as insurance policies typically cover outstanding balances, leaving the property free for heirs. Both financial institutions and members seek to use trusts because of their cost benefits, ability to secure several loans, and effectiveness in asset transfer. Consequently, trusts stand out as an efficient and competitive alternative compared to other traditional guarantee instruments.
Article Details
Section
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Esta obra está bajo una licencia internacional Creative Commons Atribución-NoComercial-SinDerivadas 4.0.
Este licenciamiento, indica que se permite copiar, distribuir, exhibir y ejecutar la obra. Todo con la condición de que se atribuya la autoría sobre la obra en la forma en que haya sido especificada por el autor o el licenciante de la obra, que la no se use comercialmente; y que no se produzcan obras derivadas sobre la obra original. El licenciante no puede revocar estas libertades en tanto la Universidad Fundepos cumpla con los términos de la licencia, el cual se describe a continuación.