While this article focuses on trust securities used for the first purchase of real estate, they can also be used for other types of loans and contracts if the real estate serves as collateral for the loan or contract performance. Real estate that can be cited as collateral under a warranty agreement includes product inventory, furniture, equipment used by a company, furniture and real estate held by the company. The borrower is responsible for maintaining the guarantees in good condition in the event of default. The property mentioned as a guarantee must not be removed from the premises unless the property is necessary in the course of normal activity. A guarantee agreement may be oral if the party (the lender) is in physical possession of the security rights. If the collateral is physically held by the borrower or if the collateral is immaterial (e.g. B a patent.  full of receivables or a certificate of claim), the guarantee contract must be in writing to comply with the Fraud Act. The security contract must be certified by the debtor, i.e. it must either bear the debtor`s signature or be marked electronically. It must contain an appropriate description of the security rights and use words that show the intention to create a guarantee right (the right to demand repayment of the loan by attachment of the guarantees).
For the guarantee contract to be valid, the borrower must normally have rights to the guarantees at the time of performance of the contract. . . .