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Bills News: Congress passes highway bill
In the middle of summer, a law was announced and passed in the USA concerning transport financing, time highway and roads in the country. According to this law, funding in the amount of $ 8 billion will be allocated on roads. A bill – highway and transportation funding act of 2015 – was also passed that covers six years and an increase in the financing budget. Discussion of the long-term project was postponed to the beginning of autumn.
At the beginning of the last century, Europeans thought and planned how they would be able to invest their current income in the future. Thus, investment funds were created, one of the varieties of which are trusts.
Investment trusts have existed for about 150 years. The King of Holland created the first trust in 1922 and provided an opportunity for investment through loans to other foreign countries. In America, trust funds appeared in the early 1940s, when a wave of bankruptcies as a result of the Great Depression abated.
A trust is one of the forms of investment funds and consists in the separation of rights to management and property, which provides enhanced asset protection. Trust creator and manager are not the same people.
The structure of a trust investment fund consists of its founder(s) and other participants who have entered into an agreement and submitted applications for its creation to the state commission responsible for regulating the securities market:
- founder is a citizen who has the right to own the assets of the fund and transfers them to trust management. A trust may be lifetime or testamentary (the transfer of property and assets will take place after the death of the founder)
- manager (trustee, principal) is a person who has received assets in management and who is obliged to fulfill his obligations under the agreement. A person can be both physical and legal. The principal is obliged to perform operations that bring the maximum benefit to the beneficiary. The agreement between the manager and the founder indicates the percentage that the principal receives in the form of remuneration for services rendered
- beneficiaries – participants or a group of persons for whom a trust fund is established. They receive income from operations carried out by the manager of the fund’s assets and financial assets.
Increasing openness is a normal global process, and the 2008 crisis showed how imperfect the current legislation is.