What Is a Trust Certificate?

CITED FROM INVESTOPEDIA

A trust certificate is a bond or debt investment, usually in a public corporation, that is backed by other assets. These assets serve a purpose similar to collateral. If the company experiences difficulty making payments, the assets may be seized or sold to help specific trust certificate holders recover a portion of their investment. The potential type of company assets used to create a trust certificate can vary, but most typically are other shares of company stock or physical equipment.