First explain what is a bond?

Bonds are a kind of marketable securities, which are credit and debt certificates issued by various economic entities in society to bond investors in order to raise funds, promising to pay interest regularly at a certain interest rate and repay the principal at maturity.

The rights and responsibilities between the borrower and the lender stipulated in the bond mainly include: first, the amount of monetary funds borrowed; second, the time of the loan; third, the cost of funds or due compensation during the loan period (i.e., the amount of the bond)

Interest).

The rights and obligations of borrowers and lenders stipulated in bonds include four meanings: first, the issuer is the economic entity that borrows funds; second, investors are the entity that lends funds; third, the issuer must

Pay interest to repay the principal; fourth, bonds reflect the creditor-debt relationship between the issuer and investors, and are the legal evidence of this relationship.

The basic properties of bonds: 1. Debts are marketable securities.

2. Bonds are a kind of fictitious capital.

3. Bonds are the expression of debt.

Characteristics of bonds: 1. Repayment.

2. Liquidity.

3. Security.

4. Profitability.

Beneficiaries in a trust relationship and creditors in a debt relationship are in a similar position in terms of claims.

The trust beneficiary has the right to benefit from the trust property.

The creditor has the right to claim against the debtor.

The beneficiary's right to benefit from the trust property is specific, while the creditor has no property interest in the debtor's specific property.

In a trust relationship, there is a trusting relationship between the beneficiary and the trustee, but in a debt relationship, there does not necessarily exist a trusting relationship between the creditor and the debtor.

The difference between trust and debt is also reflected in the following three aspects; 1.

Regarding the difference in rights during bankruptcy, if there is a legal debt relationship between a certain creditor and a certain debtor, and when a certain debtor declares bankruptcy, the creditor can only distribute the bankruptcy property equally to other creditors of the debtor.

A creditor has no priority to be repaid over other creditors.

If a creditor and a debtor have a legal trust relationship, that is, the creditor is the beneficiary and the debtor is the trustee, then the creditor (beneficiary) has priority over the debtor (trustee) when the debtor declares bankruptcy.

Other creditors have the right to obtain repayment.

2.

The difference between benefit acceptance and debt relationship.

The debtor borrows money to invest the funds and make a profit.

This income will of course belong to the debtor.

Creditors may not claim enjoyment.

Only the right to require the debtor to repay the original borrowed funds.

But in a trust relationship, the trustee is in the position of the debtor and the beneficiary is in the position of the creditor.

The trustee makes a profit by investing the trust funds collected, and the trustee (debtor) cannot enjoy this profit.

Proceeds should accrue to the beneficiary (creditor).

3.

Differences Regarding Risk Assumption In a debt-to-debt relationship, the debtor is responsible for the creditor's pending borrowings.

If the borrowed property is lost or damaged, the liability to the creditor will not be reduced.

However, in a trust relationship, if the provisions of the trust document are strictly followed, any damage or loss of the trust property or damage to the funds shall be borne by the beneficiary (creditor), and the trustee (debtor) shall not be liable for the loss.

When the property is damaged due to the fault of the trustee (debtor) himself, he shall be responsible for making up for it.