A form of a loan whereby the lender relies on the value of the collateral and no other party in case of default on the loan. This is not a common type of loan in the business world due to the volatility of most assets. In general these loans are only used in very low risk capital needs situations such as real estate or the purchase of financial instruments (bonds and annuities).
Real Estate Investment Trusts are corporations, trusts or associations that act as agencies in real estate and associated mortgages. This is a specialized tax segment and it requires recognition by the Internal Revenue Service to […]