The role of the institute of trust-based secured ownership in the legal mechanism for the functioning of agribusiness entities

The article is devoted to the study of the characteristics and significance of the institute of trust-based secured ownership in enhancing the efficiency of credit provision to agribusiness entities. It is determined that the proper application of the legal provisions governing trust-based secured ownership is a key factor in improving the level of financing for their activities. It is noted that a stable and consistent system of crediting agribusiness entities is an important guarantee of their economic efficiency, which in turn ensures the proper implementation of the primary functions of such entities and the supply of agricultural products to the country’s population. An effective crediting mechanism for agribusiness entities directly depends on the appropriateness and timeliness of debt repayment by the debtor, which, under current conditions, is associated with a number of risks due to the specific nature of agricultural activity. It is established that agrarian economic activity is characterized by several features resulting from its direct connection with the natural environment and its impact on efficiency. Therefore, this type of activity is considered highly risky. Another important factor contributing to the risky nature of agrarian activity is its seasonal character. The author notes that the nature of trust-based secured ownership is determined by its derivative character, as well as by its functional purpose related to securing the fulfillment of an obligation. This method of securing an obligation has a proprietary nature, which is reflected in the legal title to the property under the agreement establishing trust ownership. The author concludes that, as a general rule, the user of the trust-owned property is the trustor – the debtor under the primary obligation. It is important to emphasize that this is a positive aspect in the context of agribusiness operations, as such entities can utilize this method of securing obligations to obtain credit without the actual withdrawal of strategically important assets from production processes.