The Mexican trust: A reliable security mechanism in international finance transactions

Abstract

In this article, we will show why the Mexican guaranty trust has emerged as a preferred security mechanism in international finance transactions due to its reliability and multifaceted benefits, such as (i) it functions as a bankruptcy remote special purpose vehicle; (ii) it grants legal certainty to the parties of the trust agreement; (iii) the institutionalization of the trustee assures professionalism; (iv) a wide range of assets can be the object of guaranty trust; (v) it has a more efficient enforcement procedure; and (vi) it has tax exceptions available.