Asset Sale

Asset Sale

The sale of a loan by a bank to a third party. An asset sale ensures that the bank receives cash for a loan it has made and reduces its potential for bad debt. It removes the loan from the bank's portfolio, unless the bank has an agreement with the third party to take the loan back in the event of default.
References in periodicals archive ?
The Asset Sale Offer is being made pursuant to the indentures governing the Notes (collectively, the "Indentures") and an Offer to Purchase, dated February 27, 2018 and related Letter of Transmittal, which more fully set forth the terms and conditions of the Asset Sale Offer.
M2 EQUITYBITES-January 11, 2016-HomeFed declares higher principal amount and extension of Asset Sale Offer for USD619,225 senior notes due 2018
has closed three asset sale transactions in the last month that have generated around $100 million in cash.
Furthermore, unlike a stock sale, an asset sale triggers both a corporate level tax and a shareholder level tax.
Even after the 2003 Tax Act's tax reductions, this double taxation of the purchase price paid to a C corp in an asset sale produces a 53 percent tax rate after taking into account the effect of California tax.
the asset sale deemed to occur as a result of a Sec.
S persons, each of whom owns at least 10 percent directly or indirectly), or a Foreign Personal Holding Company (FPHCO), some or all of the deemed asset sale gain could be Subpart F or FPHCO income.
In the second quarter, HCR sold 21 assisted living residences to Brookfield, Wisconsin-based Alterra or placed them in escrow awaiting funding as part of a previously announced asset sale agreement covering 28 facilities.
750% Senior Notes due 2016 issued on August 17, 2010 (the "2016 Senior Notes issued August 2010" and, collectively with the 2013 Notes and the 2016 Senior Notes issued October 2009, the "Notes"), in accordance with the terms of the indentures governing the Notes (the "Indentures"), at a purchase price of 100% of the principal amount thereof, plus accrued and unpaid interest thereon to, but not including, the Asset Sale Offer Payment Date (as defined below).
From a tax perspective, individual owners of a C corporation prefer a stock sale over an asset sale, because it produces only one level of tax (shareholder), not two (corporation and shareholder).
These statements include those related to the AVINZA asset sale and closing.
Historically, a seller would report an asset sale using the installment method.