Practice question
A trust entity’s ordinary creditor seeks satisfaction from assets clearly held as trustee for a separate identified trust. The creditor is not a party interested in that trust and supplies no other legal basis. Which is correct?
- Section 92 protects the stated trust assets from that unrelated claim.
- Every asset in the building belongs to every creditor
- Trust records automatically make all claims equal
- The creditor becomes a beneficiary by demanding payment
- The entity may call any unrelated debt a trust claim
Legal references
- General Banking Law, RA 8791, Sections 3, 55, 87-88 and 92-93: https://lawphil.net/statutes/repacts/ra2000/ra_8791_2000.html
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