CONTENTS OF A TRUST RECEIPT

– A trust receipt
need not be in any form but it must substantially
contain the following:
1. A description of the goods, documents or instruments subject of the trust receipt

2. The total invoice value of the goods and the amount of the draft to be paid by the
entrustee

3. An undertaking or a commitment of the entrustee:
a. to hold in trust for the entruster the goods, documents or instruments therein described
b. to dispose of them in the manner provided for in the trust receipt; and
c. to turn over the proceeds of the sale of the goods, documents or instruments to the entruster to the extent of the amount owing to the entruster or as appears in the trust receipt or to return the goods, documents or instruments in the event of their non-sale within the period specified therein.

4. The trust receipt may contain other terms and conditions agreed upon by the parties in
addition to those hereinabove enumerated provided that such terms and conditions shall
not be contrary to the provisions of this Decree, any existing laws, public policy or morals, public order or good customs.

5. Trust receipts are denominated in Philippine currency or acceptable and eligible foreign
currency.