CURACAO TRUST LEGISLATION
Entered into force on 1 January 2012
On January 1st 2012, new legalization entered into force pursuant to which it is now possible to set up a trust, similar to the trust in Anglo-Saxon common law jurisdictions, in Curacao. This trust is a legal exception to the paritas creditorum rule as we know it and serves as an important instrument which could be used for asset segregation purposes.
With the introduction of the Curacao Trust and the new paragraph 3 to section 231 of Book 3 of the Curacao Civil Code the need for a parallel debt construction in the event that Curacao law security interests are granted as part of a syndicated loan has been abolished, which makes the Curacao trust very interesting for financing and security purposes. The possibilities created pursuant to the new legislation in Curacao for collective security arrangements are to date not available in the Netherlands.
Karel Frielink
Attorney (Lawyer) / Partner
(29 February 2012)
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