Question: What safeguards may a bank establish to protect itself when it lends on the basis of a customers receivables pledged as collateral for a loan?

What safeguards may a bank establish to protect itself when it lends on the basis of a customer’s receivables pledged as collateral for a loan?

Step by Step Solution

★★★★★

3.47 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The banks will accept for pledging only tho... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

433-B-F-F-M (6015).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Q:

Basic properties of growth rates. Use the fact that the growth rate of a variable equals the time derivative of its log to show: (a) The growth rate of the product of two variables equals the sum of...

Q:

On the basis of experiments, it has been suggested that concrete, either plain or reinforced, can be a suitable material for dies in sheet-metal forming operations. Describe your thoughts regarding...

Q:

When estimating bad debts on the basis of a percentage of accounts receivable, what is the advantage of using an aging schedule?

Q:

When a project is evaluated on the basis of its total risk, who determines whether the project is acceptable? How? Is share price likely to be maximized?

Q:

Financial Analysis and Forecasting case study. Please read and provide the Pro Forma in Tables 1-6. I need help!! Cant figure it out. Excel upload please. ( also please disregard the nukbers that are...

Q:

I need homework help with Financial Analysis & Forecasting for a case. Pennsylvania Box Company. So far, I was able to complete Tables 1-3. I need assistance with the rest, table 4-6 and the analysis...

Q:

I need homework assistance with a financial analysis & forecasting case for the Pennsylvania Box Company. There are also analysis questions (1-12) that need to be answered as well. So far, I have...

Q:

What should be the appropriate classification of margin loans under IFRS 9? What would be the extent of applicability of these three classifications with regard to margin loan receivables? Possible...

Q:

WEEK 1 DISCUSSION: 1. How can interest rates be negative? Negative interest rates are a form of monetary policy that sees interest rates fall below 0%.Central banks and regulators use this unusual...

Q:

Please see attached file and answer (1-2 pages) the following questions: - What is the structure of this industry? - Who are the primary players? - What external risks does the industry face? Table...

Q:

MARK X COMPANY (A) Mark X Company manufactures farm and specialty trailers of all types. More than 85 percent of the companys sales come from the western part of the United States, particularly...

Q:

Row array game Scores contains all player scores. Construct a row array high Scores than contains all player scores greater than min Score. Ex: If game Scores is [2, 5, 7, 6, 1, 9, 1] and min Score...

Q:

1. For independent RVs X1, X2, X3, put S, := E1 Xj, n = 1,2, 3. Show that Si and S3 are conditionally independent given S2. Assuming for simplicity that the X;'s are integer-valued, this means that,...

Q:

solve the diff eq : y ' = ( y 1 ) ( y - 2 )

Q:

An apple farm yields an average of 41 bushels of apples per tree when 25 trees are planted on an acre of ground. Each time 1 more tree is planted per acre, the yield decreases by 1 bushel (bu) per...

Q:

Using the Input Job Variable Costs' use case and the information, both below, create a sequence diagram illustrating a Team Leader (TL) updating a Job's variable costs at the completion of a job. The...

Q:

Mr. Chai has been trading for some years as a wine merchant. The following list of balances has been extracted from his ledger as at 30 April 20X7, the end of his most recent financial year. Ghc...

Q:

Is the following distribution symmetrical? Calculate the covariance. Calculate the variance of the portfolio made up of 30% X and 70% of the Market. Find the Beta for the firm. Find the correlation...

Q:

Peterman Inc. provides an automobile to Ms. Winters for her to use in carrying out her employment duties. Ms. Winters is given full possession of the car and is allowed to use it for personal needs....

Q:

If the crucial factor determining a country's low standard of living is the adverse set of legal and cultural institutions it possesses, can you offer suggestions for how the other nations of the...

Q:

What changes did the Federal Deposit Insurance Reform Act of 2005 make to the deposit insurance assessment scheme for DIs?

Q:

Under the Federal Deposit Insurance Reform Act of 2005, how is a Category I deposit insurance premium determined?

Q:

Under Basel III, how are residential one-to four-family mortgages assigned to a credit risk class?

Q:

ASSESSMENT: 1. A five-sided die was modified in an experiment to appear with one dot on two sides, two dots on one side, and three dots on two sides. Let the x be the number of dots seen when this...

Q:

Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 500 payments a day will be made to lock boxes with an average payment size...

Q:

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long - term bond fund, and the third is a money market fund that provides a safe return of 6 % ....