Open Account


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Open Account

An unpaid or unsettled account; an account with a balance that has not been ascertained, that is kept open in anticipation of future transactions. A type of credit extended by a seller to a buyer that permits the buyer to make purchases without a note or security and is based on an evaluation of the buyer's credit. A contractual obligation that may be modified by subsequent agreement of the parties, either by expressed consent or by consent implied from the conduct of the parties, provided the agreement changing the contractual obligation is based upon independent consideration.

References in periodicals archive ?
1974), aff'g 58TC 417 (1972), the IRS took the position that loam were separate transactions, not open account debt.
In response to the Tax Court's decision in Brooks, in 2007 the IRS issued proposed regulations modifying the definition of open account debt (REG-144859-04).
In addition, practitioners need to be aware of a potential change in the definition of open account debt.
A statement for the Central Bank of Iraq cited that: "The Board of Directors, in its meeting yesterday, decided to let money transfer companies to open accounts in the Bank directly deal with both / Iraqi dinar and dollar / to carry out the purchase of foreign currency.
The accused had the power to open accounts without getting the branch operation manager's approval.
Currently, Iran can only open accounts in state owned UCO Bank, and these are restricted to oil-related transactions.
For instance, at present, although offshore banking units (OBU) can undertake renminbi-related businesses, domestic legal entities and individuals cannot open accounts at OBU.
New website allows users to open accounts through a simple online application process Alinma Bank has relaunched its website with what it claims are a range of enhancements that leverage the latest internet banking technologies "in order to provide bank partners (clients) with a streamlined user experience.
Osama Osman, a professor of finance and economy at King Fahd University of Petroleum and Minerals, said the banks would increase their financial reserves when they open accounts for the Hafiz beneficiaries to receive their monthly payments.
Among the findings of the report are the increase in open accounts since HSAs were introduced in 2004, the average age of HSA policyholders, and the nature of the open accounts.
It is reported that the worst case took place in the southern state of Andhra Pradesh, where some 90,000 Muslim students were unable to open accounts to deposit scholarship cheques given to them by the government.
Pedram Soltani, a member of the Tehran Chamber of Commerce, said, "Some local Emirati banks open accounts for these [Iranian] firms but they seriously control them and recently froze the assets in these accounts under the pretext of suspicious transactions.