How title to trust assets is to be taken – what if the how title to asset being held is different from the name of the trust?
Our certification of trust does contain a clause as to how title to trust assets is to be taken. That only comes in when the trust is the borrowing entity and will hold title to the property associated with the loan. Our trust certifications do differ depending on if the trust is the borrowing entity, a guarantor entity, or a sub-entity of the borrowing entity. In the sub-entity scenario, this clause points out that the trust is an authorized signer and a member by virtue pointing you to Exhibit A which shows the LLC structure. This appears to capture the intent of LP’s Trust Certificate.
However, if you are referring to a non-standard situation (where borrower is not the vested title holder), then that can be identified on the Property Tab.
For UCC purposes, we do collect the exact name of the trust as specified in the trust documents. The reference to the trust throughout the loan documents can be controlled with the Trustee Title Type and Title Field. We have a default to add “Trustee of” or “Co-Trustee of” to the exact name of the trust as a convenience. If there is a custom reference to trust, for the trustee, that is needed, please use the “Other” Title Type to edit or enter as needed. The trustee information is used to populate the trust reference within the documents. Multiple trustees signing for the trust will pluralize the trust reference when not used as a signature block. We understand there may be instances where the lender’s reference (Borrower page data entry) may not match the title vesting previously used by the trust (eg. Grant Deed). In such instances that the difference is not substantive, the Property page allows the alternative vesting to be entered and used on the first page of recorded documents, when the lender decides that is desired. A reference to that alternative name being valid for holding trust assets is included on the Certification of Trust.
If the trust has been amended or restated, that can be included in the name of the trust when entering the entity information is entered. For instance it can be written, The XYZ trust dated January 1, 2000, and as amended on January 1, 2020.
If the Trust documents do not specify an exact name, the data entry will open up to provide a designation of the trust as well as the date of the trust for use as reference in the documents.
Navigate to the borrower tab and select whichever one of the borrowers you have entered as a trust.
Once you have navigated to this section, if your documents do not specify a name for the trust, you can check the box 'The trust documents do not specify a name for the trust'.
The 'Trust document designated as:' dropdown will give you three options to choose from. You can choose between Trust Agreement, Declaration of Trust and Other.
In addition, the 'Trust Document Date:' field will allow you to enter the date of the trust.
How to add the Trustee:
If you need the "Title" pre-filled box to open up to allow a manual change, you may do so by selecting "Other" in the "Title Type" dropdown. If you decide you want to go back to the pre-filled Title box, be sure to select a different Title Type than Other, either Trustee or Co-Trustee. Please note that if you change the Title Type of the Trust to Other, no changes will occur to the pre-filled Title box automatically; it will remain what was previously selected, either Trustee or Co-Trustee until a manual change has occurred.
Trustee:
Co-Trustee: 
Other:
GoDocs document set includes that the Trustee has delivered to Lender full and complete copies of the trust agreement. Could you further explain?
-
-
- The Trustee of the trust should deliver a full and complete copy of the trust to the Lender so the Lender can ascertain who has the authority to bind the trust to the terms of the loan documents, guaranty, etc. and to formulate the trust certification.
- That full trust should be reviewed internally by the Lender, through a LegalNet partner, or Lender's inside counsel to determine the authority to bind the trust to the terms, conditions, and obligations of the loan.
-
-
- Our trust certifications do differ depending on if the trust is the borrowing entity, a guarantor entity, or a sub-entity of the borrowing entity. In the sub-entity scenario, this clause points out that the trust is an authorized signer and a member by virtue pointing you to Exhibit A which shows the LLC structure. This appears to capture the intent of LP’s Trust Certificate.
How are title to trust assets taken? What if the title to asset being held is different from the name of the trust?
Our certification of trust does contain a clause as to how title to trust assets is to be taken. The only comes in when the trust is the borrowing entity and will hold title to the property associated with the loan. However, if you are referring to a non-standard situation (where borrower is not the vested title holder), then that can be identified on the Property Tab.
What if the trust has been amended, or reinstated, there is no place to list those dates?
If the trust has been amended or restated, that can be included in the name of the trust when entering the entity information is entered. For instance it can be written, The XYZ trust dated January 1, 2000, and as amended on January 1, 2020.
You do not require the trustors to be listed on the certificate?
Correct, we do not require the names of the trustors to be on the trust certification. This is because the purpose of the trust certification is to identify and have the parties certify the names of the trustees who have the authority to bind the entity to the terms, conditions, and obligations of the loan documents.