trust receipt

noun

: 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.

Dictionary Entries Near trust receipt

Cite this Entry

“Trust receipt.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/trust%20receipt. Accessed 8 Feb. 2023.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!


Challenging Words You Should Know

  • hedgehog reading a book
  • Often used to describe “the march of time,” what does inexorable mean?
True or False

Test your knowledge - and maybe learn something along the way.

TAKE THE QUIZ
Solve today's spelling word game by finding as many words as you can with using just 7 letters. Longer words score more points.

Can you make 12 words with 7 letters?

PLAY