trust receipt


trust receipt
A security transaction intended to aid in financing importers and retail dealers who do not have sufficient resources to finance the importation or purchase of merchandise, and who may be unable to acquire credit except through utilization as collateral of the merchandise imported or purchased. 53 Am J1st Tr Rec § 1. A comparatively modern instrument of security protecting a bank or finance company for money advanced or credit given for the purchase of goods by a dealer, the bank or finance company receiving title from the manufacturer and taking from the dealer a statement that he holds the goods in trust for the bank or finance company, it being contemplated by the transaction that the dealer will resell the goods and repay the bank or finance company, and that the ultimate buyer or consumer will obtain clear title. 47 Am J1st Sales § 838; 53 Am J1st Tr Rec § 2.

Ballentine's law dictionary. . 1998.

Look at other dictionaries:

  • trust receipt — n: a trust agreement between a lender and a borrower by which the lender gives up possession of goods without abandoning title and the borrower agrees to hold the goods in trust for the lender and if the goods are sold to turn the proceeds over… …   Law dictionary

  • Trust receipt — Receipt for goods that are to be held in trust for the lender. The New York Times Financial Glossary * * * trust receipt trust receipt ➔ receipt1 * * * trust receipt UK US noun [C] LAW, FINANCE ► an arrangement in which a bank lends to a business …   Financial and business terms

  • trust receipt — receipt for goods that are to be held in trust for the lender. Bloomberg Financial Dictionary * * * trust receipt trust receipt ➔ receipt1 * * * trust receipt UK US noun [C] LAW, FINANCE ► an arrangement in which a bank lends to a business so… …   Financial and business terms

  • Trust Receipt — Notice of the release merchandise to a buyer from a bank, with the bank retaining the ownership title to the released assets. In an arrangement involving a trust receipt, the bank remains the owner of the merchandise, but the buyer is allowed to… …   Investment dictionary

  • trust receipt — noun : a trust agreement between a bank and its debtor by which the bank gives up possession of collateral security to the debtor without abandoning its title to the security and the debtor agrees to hold the security in trust for the bank and if …   Useful english dictionary

  • trust receipt — A pre U.C.C. security device now governed by Article 9 of the Code. A receipt stating that the wholesale buyer has possession of the goods for the benefit of the financier. Today there usually must be a security agreement coupled with the filing… …   Black's law dictionary

  • trust receipt — A document given by a bank holding a borrower s goods as security against a loan (see trust letter), when the borrower takes possession of these goods in order to sell them to pay off the loan …   Big dictionary of business and management

  • receipt — a written acknowledgement of having received money or goods specified Also statement Euroclear Clearing and Settlement glossary A detailed summary of an account. Euroclear Clearing and Settlement glossary See deposit receipt, withdrawal receipt.… …   Financial and business terms

  • receipt — The acceptance of property upon a delivery thereof. The acceptance of money offered by way of payment or gift. An acknowledgment in writing of the receipt of money. Glickman v Weston, 140 Or 117, 11 P2d 281, 12 P2d 1005. Written evidence of the… …   Ballentine's law dictionary

  • Trust — Trust, n. [OE. trust, trost, Icel. traust confidence, security; akin to Dan. & Sw. tr[ o]st comfort, consolation, G. trost, Goth. trausti a convention, covenant, and E. true. See {True}, and cf. {Tryst}.] 1. Assured resting of the mind on the… …   The Collaborative International Dictionary of English