Answer:
You will need to obtain either a complete copy of the trust, or a Memorandum of Trust (typically a document in which the trustee attests under oath to what the salient provisions of the document are.) Typically, when the trust affects real estate, it will be necessary for documentation of the trust to be filed in the records in the jurisdiction where the real property is located.
In particular, you will need to verify borrowing authority, as well as the authority to pledge trust assets. Confirm that assets being pledged are titled in the same manner they are being pledged.
Verify the identity of the trustee.
You have a right to require sufficient information about the assets of the trust to enable you to make a prudent evaluation of whether the trust is creditworthy.
First published on BankersOnline.com 3/4/02
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