Trust Deed

Borrowers can issue ‘a trust deed’ when they collateralize RWA for a loan.

The trust deed represents the ownership of RWA and the liability for repayment of an RWA-backed loan.

Trust deeds can be sold on the market before the loan payout date. When the trust deed is sold, the loan with collateralized RWA is also transferred to the buyer of the trust deed.

The buyer of the trust deed takes the position of the borrower. Thus, he should repay the debt before the pay-out date or he will forfeit the collateralized RWA.