Trust services for businesses

With a trust deed, a business can obtain financing from an institutional lender by providing a promissory note as security for the loan.

The promissory note is in turn guaranteed by a trust deed that includes securities, such as a hypothec on immovable and movable property. The property can include the borrower’s machinery, vehicles, rent payments or accounts receivable.

This type of financing is especially common when several lenders are involved. The trust acts as a neutral third party and holds the securities for all lenders.

Many municipalities and private and parapublic businesses in Quebec operate sanitary landfill sites for waste materials or dry materials that must eventually be decontaminated.

To obtain an operating certificate from the Ministère de l’Environnement, operators need to set aside a budget for decontamination. To do that, they create an environmental trust and can name Desjardins Trust to manage the trust and the money in it.

This type of trust is typically in place for at least 20 years. Any release of funds must be approved by the Ministère de l’Environnement, which will supervise the decontamination work.