A trust receipt was a device used before the adoption of the UNIFORM COMMERCIAL CODE (UCC); it is now governed by Article 9 of the UCC, which concerns SECURED TRANSACTIONS. A trust receipt stated that the buyer had possession of the goods for the benefit of the financier. Currently there ordinarily must be a security agreement, together with the filing of a financing statement, to protect a lender's interest in goods purchased on credit by a buyer.
User Comments Add a comment…