Trust Receipt


Also found in: Financial, Acronyms.

Trust Receipt

A document by which one individual lends money to purchase something and the borrower promises to hold the item for the benefit of the lender until such time as the debt is paid.

A trust receipt was a device used before the adoption of the Uniform Commercial Code (UCC); it is now governed by Article 9 of the UCC, which concerns Secured Transactions. A trust receipt stated that the buyer had possession of the goods for the benefit of the financier. Currently there ordinarily must be a security agreement, together with the filing of a financing statement, to protect a lender's interest in goods purchased on credit by a buyer.

References in periodicals archive ?
Additionally, Registrar and Transfer Company will become ESCO's new Rights Agent with respect to the preferred stock purchase rights held by all holders of ESCO common stock and common stock trust receipts.
In most cases, SMEs in trading and manufacturing get bank facilities -- mainly letter of credit (LCs) and trust receipts (TRs) -- at between 6 to 14 per cent annum," said Jitendra Gianchandani, chairman of Jitendra Consulting Group (JCG).
3 million was in relation to interest and bank charges arising from our outstanding short term loans and trust receipts payable.
Taxable income of a trust includes trust receipts subject to income tax.
3 billion and MTA aid trust receipts at $328 million; actual receipts are about 6% below forecast for the first two months of 2010.
The financing includes before and after shipping facilities, loans against trust receipts, discounted bills, payments for receivable amounts and discounted export bills.
1 million in bank loans and trust receipts payable.
NY) floating-rate trust receipts series 2004 FR-L1 (liquidity facility: Lehman Brothers Holdings Inc.
The securities include custodial or trust receipts, auction rate receipts, inverse floating-rate receipts, and synthetic floating-rate receipts with put features, the most popular type of secondary market synthetic security.
Shinhan Financial Group, South Korea's largest financial services company and the nation's second largest banking operation, announced today the listing of its shares as Level II American Depository Trust Receipts (ADR) on the New York Stock Exchange (NYSE).