A trust receipt is an instrument through which a bank retains title to goods until they are paid for.

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A trust receipt is a legal document that transfers ownership of assets from a borrower to a lender as collateral for a loan. The borrower holds the assets in trust for the lender until the loan is repaid. This is commonly used in international trade finance, where the bank holds title to the imported goods until the importer pays the amount at maturity.

A Trust Receipt Is an Instrument Through Which a Bank