Book III: Different ways of acquiring property

An assignment of receivables made under a trust is enforceable against third parties on the date of the trust contract or the endorsement evidencing it. It only becomes enforceable against the debtor of the assigned claim when the assignor or the trustee notifies him of it.

On pain of nullity, the trust contract and its amendments shall be registered within one month of their date with the tax department of the trustee’s registered office or with the non-resident tax department if the trustee is not domiciled in France. Where they relate to immovable property or rights in rem in immovable property, they shall, under the same penalty, be published under the conditions provided for in articles…

A national register of trusts shall be set up in accordance with procedures specified by decree in the Conseil d’Etat.

When the trustee acts on behalf of the trust, he or she must expressly mention this. Similarly, when the trust assets include property or rights whose transfer is subject to publicity, the transfer must mention the name of the trustee in his or her capacity.

The trust contract shall define the conditions under which the trustee shall report to the settlor. However, where during the performance of the contract the settlor is subject to a guardianship measure, the trustee shall report to the guardian at the latter’s request at least once a year, without prejudice to the periodicity fixed by the contract. Where, during the performance of the contract, the settlor is the subject of…

In its dealings with third parties, the trustee is deemed to have the widest powers over the trust assets, unless it is shown that the third parties were aware of the limitation of its powers.

The opening of safeguard, receivership or judicial liquidation proceedings in favour of the trustee does not affect the fiduciary estate.

Without prejudice to the rights of the settlor’s creditors holding a right of resale attached to a security published prior to the trust agreement and excluding cases of fraud on the rights of the settlor’s creditors, the trust assets may only be seized by the holders of claims arising from the conservation or management of those assets. If the trust assets are insufficient, the settlor’s assets constitute the common pledge…

The fiduciary is liable, out of his own assets, for any faults he commits in the performance of his duties.

In the absence of contractual stipulations providing for the conditions of his replacement, if the trustee fails in his duties or jeopardises the interests entrusted to him or if he is the subject of safeguard or receivership proceedings, the settlor, the beneficiary or the third party designated pursuant to Article 2017 may apply to the courts for the appointment of a provisional trustee or request that the trustee be replaced….