A trust receipt acknowledges that the lender trusts the borrower to repay the loan before any dividends are paid.

Name: A trust receipt acknowledges that the lender trusts the borrower to repay the loan before any dividends are paid.
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A trust receipt is a document issued by a bank that releases ownership of goods (such as inventory or machinery) to a borrower but acknowledges that the bank holds a security interest in the goods until the loan is repaid. It does not relate to dividends.

A Trust Receipt Acknowledges That the Lender Trusts the Borrower