Document background
The Floating Deed of Trust is a specialized security instrument used in Swiss commercial and financial transactions where a flexible security interest over changing assets is required. This document type became particularly relevant after Switzerland's ratification of the Hague Trust Convention in 2007, enabling better recognition of trust structures within the Swiss civil law system. The deed establishes a floating charge that allows the grantor to continue normal business operations while providing security to beneficiaries, typically in the context of corporate financing, asset-based lending, or large-scale commercial transactions. The document must carefully navigate Swiss property law, debt enforcement regulations, and financial market requirements while incorporating trust mechanisms. The Floating Deed of Trust is particularly useful in scenarios involving international financing structures or when dealing with a constantly changing pool of assets such as inventory, receivables, or trading portfolios.
