trust receipt

noun

Legal Definition of trust receipt

: 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 to the lender in settlement of the debt

Note: The Article Nine security interest replaces the trust receipt where the Uniform Commercial Code has been adopted.

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Dictionary Entries Near trust receipt

trustor

trust receipt

trust territory

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Cite this Entry

“Trust receipt.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/trust%20receipt. Accessed 18 Oct. 2021.

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