Trust Receipt

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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 ?
Further, under the regular practice carried out in adherence to Trust Receipts Ordinance No 12 of 1947 and the Inland Trust Receipts Act No 14 of 1990, the Director General of Commerce can, on the Board's consensus, grant powers required for transactions of Trust Receipts (as collateral in clients' transactions used for both import/export loan applications as well as domestic goods transport) to the applying financial institutions / credit agencies (that have been already approved by the Central Bank).
Goods are released to the importer under trust receipts, meaning that the importer can use the goods immediately, but they belong to the bank until the importer settles the loan.
The notes are payable from the proceeds of a new regional mobility tax and other aid trust receipts, as well as from a range of other revenue sources the authority can use.
The act allocates trust receipts and disbursements between principal and income (CPC secs.
The Service agreed, because the trust agreement gave the trustee broad discretion to allocate trust receipts between principal and income, and corporate distributions exceeding 20% of corporate assets were allocated to principal under state law.
Let me give you a small sampling of the many topics addressed: the uniform commercial code (UCC); security agreements; UCC financial statements; confession of judgment; mortgages; trust receipts; mechanic's liens; statutory judgments; consignments; subordinational agreements; assignments; and more.
Under the TRAIN law, 5 percent of the combined VAT collections of the BIR and the BOC will be treated as trust receipts to cover VAT refund claim payments.
Austin: Fitch Ratings has affirmed the following trust receipts for Brunswick Electric Membership Corporation, NC (BEMC):
In 2013, the BSP made some improvements to the EDYRF by adding eligible collaterals for export-import financing, such as dollar-denominated trust receipts covering the importation of goods and materials, and term loans to finance capital expenditures or plant expansion or modernization projects.
"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).
Taxable income of a trust includes trust receipts subject to income tax.
The Long-term 'AA'/Outlook Stable rating assigned to series G-60, G-61, G-62 and G-64 custodial receipts are based on the rating that Fitch has assigned to the Royal Bank of Canada, acting through a New York branch, (RBC; AA/F1+/Stable) the provider of the irrevocable direct-pay letter(s) of credit (LOCs), which secures the trust receipts deposited in the trusts that have a stated expiration date of Sept.