Meantime, conditions imposed on pledged assets
do have impact on the adoption of the Islamic pawnshop.
Specific types of restricted or pledged assets
include those subject to repurchase and reverse purchase agreements, those pledged as collateral are placed under option agreements and letter stock or securities restricted as to sale (deposits with States are excluded).
The bank's liquid assets (excluding pledged assets
) accounted for about a
Some jumbo lenders will require pledged assets
. This creates a deposit, quasi-margin relationship between the borrower and the bank.
For instance, Muthoot Finance, the largest player in the rapidly growing business, had to write off gold worth Rs 4 crore last year after it discovered that borrowers had pledged assets
that were stolen.
The Chair of BDZ Holding's Board of Directors also made it clear that the bondholders had sent a letter two days ago, demanding an exhaustive list of BDZ's pledged assets
with documents certifying the current status.
Importantly, we were able to mutually terminate a recently executed Security and Loan Agreement releasing all related and pledged assets
, secured by this agreement.
The collateral limits the lenders' downside risk, and the fear of losing the pledged assets
encourages borrowers to act prudently.
“With the growing complexity of the FHLB's credit and collateral policy it is becoming increasingly difficult for member banks to ensure pledged assets
meet the Federal Home Loan Banks' standards in order to obtain maximum borrowing power,” said David Green, President and CEO of The StoneHill Group.
The pledged assets
and the short-term note payable remained on Lehman's books as Lehman increased cash (assets) and short-term notes payable (liabilities) by the amount borrowed.
He also said that he had by then become aware that pledged assets
of an insurance company were unable to be included as a principal asset.
The firm, which sees Mr Dudley take over from embattled chief executive Tony Hayward, said it had also pledged assets
, including interests in production from its major Thunder Horse and Mad Dog operations, to support a pounds 20bn compensation fund.