Collateral Trust, the most robust form of pledge under French law
Fiducie is an operational tool with no equivalent in terms of risk-mitigation:
Its enforceability rests on the transfer of the full ownership from the settlor to the trustee.
The establishment of a fiducie is fiscally neutral and involves reduced taxation and transaction costs.
The fiducie is totally bankruptcy-remote. It is kept isolated from the trustee’s own property, from all other fiducies and protected from any alienation by the grantor or its creditors.
The scheme is very flexible as several assets, including liabilities, may be grouped within the same fiducie.
It is managed according to a tripartite convention which details the rights and obligations of the parties. Its execution does not require any outside intervention.