1E9Ct5D

a) That the trustee can only begin the extra-judicial foreclosure process when itreceives a written petition from the beneficiary requesting such action, and thenature of the debtor’s noncompliance is specifically stated;b) That the trustee must notify the trustors of the petition, and the latter may onlychallenge the foreclosure if they tender payment of the debt, prove their compliancewith the obligation, or provide documentation that proves an extension of thepayment period.204C H A P T E R X IThe document containing the extra-judicial foreclosure agreement must be includedin a special section of the guaranty trust, which must have the signature of the trustor inaddition to the his signature on the trust agreement. If the extra-judicial foreclosure isnot expressly agreed, the procedures dictated by the Commerce Code must be followed.Although the protection provided by guaranteeing obligations through a trust agreementoffers various advantages in relation to other types of guaranties given that in thetrust the goods are no longer owned and possessed by the debtor, thereby allowing fora much larger and more ideal range of legal action in an innumerable amount of transactions,it must be kept in mind that the formation of this type of guaranty involves significantoutlays in notary fees and administrative costs, which may render the trust apoor option in some cases.