For some borrowers, such as individuals with large deferred compensation arrangements or who are expecting a large inflow of cash in the near future (access to trust funds becomes available, a legal settlement has been resolved and payout is imminent, etc.) this arrangement allows them to access their full borrowing potential without committing to immediate payment.
Every consummated transaction that is not cash- or credit-based requires trust in the other party and in the security of the payment mechanism.
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One is to lend employees cash secured on shares held in an employee-benefit trust, usually offshore, as part of their annual bonus but deferred for three to five years.
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Bond trading made the situation seem dire, although it may well have been affected by investors fleeing the stock and commodities markets and parking their cash in short-term Treasury securities, fearing to trust banks in light of the current economic turmoil.
Gene Marks is owner of Marks Group, a technology consulting firm, and author of In God We Trust, Everyone Else Pays Cash--Simple Lessons From Smart Business People.
You can place cash, stock, real estate or other valuable assets in your trust.
Everything else, including cash and securities, would go to a living trust set up in 1997.
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In a lot of countries, they give cash to someone they trust.
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With the support of Dame Judi Dench, the Woodland Trust has been appealing for cash to buy Wentwood Forest near Newport in south Wales.
Price Waterhouse Coopers said the trust "lacked transparency" in its reporting of the scale of cash problems.
The banks were calling in their loans, but the investment-trust companies were flush with cash so the chaebol tapped them instead.
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Vanguard Group's Retirement Savings Trust stable-value fund, for example, had more than 9% in cash at the end of March, whereas longer term the firm would like to have only a 3% to 5% cash stake, says Sue Graef, a principal at the firm.
Instead of holding pledged stock in trust accounts for its customers, says the complaint, Credit Bancorp put the shares in cash or margin accounts, sold or borrowed against the stock and kept the proceeds, sometimes buying more securities with the money.
Supporters' trust chair Phil Sumbler said the club was right to warn those who might be prepared to cash in.
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