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Definition of Trust Company
Organization usually combined with a commercial bank, which is engaged as a trustee for individuals or businesses in the administration of trust funds, estates, custodial arrangements, stock transfer and registration, and other related services.
DTC is a user-owned securities depository which accepts deposits of
Better known as CDIC, this is an organization which insures qualifying deposits and GICs at savings institutions, mainly banks and trust companys, which belong to the CDIC for amounts up to $60,000 and for terms of up to five years. Many types of deposits are not insured, such as mortgage-backed deposits, annuities of duration of more than five years, and mutual funds.
A book-entry depository for GNMA securities. The depository was initially operated by
Commonly sold in the form of reducing term life insurance by lending institutions, this is life insurance with a death benefit reducing to zero over a specific period of time, usually 20 to 25 years. In most instances, the cost of coverage remains level, while the death benefit continues to decline. Re-stated, the cost of this kind of insurance is actually increasing since less death benefit is paid as the outstanding mortgage balance decreases while the cost remains the same. Lending institutions are the most popular sources for this kind of coverage because it is usually sold during the purchase of a new mortgage. The untrained institution mortgage sales person often gives the impression that this is the only place mortgage insurance can be purchased but it is more efficiently purchased at a lower cost and with more flexibility, directly from traditional life insurance companies. No matter where it is purchased, the reducing term insurance death benefit reduces over a set period of years. Most consumers are up-sizing their residences, not down-sizing, so it is likely that more coverage is required as years pass, rather than less coverage.
Large and creditworthy company.
A bond in which the issuer (often a holding company) grants investors a lien on
Assets acquired to create money. May include plant, machinery and equipment, shares of another company etc.
Expected rate of return demanded by investors in a company, determined by the average risk of the company’s assets and operations.
Related: Unsystematic risk
See asset-specific risk
Arrangement whereby the shareholders of a project receive output free of
Certificates issued by a trust that was formed to purchase an asset and lease it
company engaged in making loans to individuals or businesses. Unlike a bank, it does not receive deposits from the public.
A mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee
A corporation that owns enough voting stock in another firm to control management and
A firm licensed to sell insurance to the public.
Loan made by one unit of a corporation to another unit of the same corporation.
Transaction carried out between two units of the same corporation.
A closed-end fund regulated by the Investment company Act of 1940. These funds have a
limited liability company
an organizational form that is a hybrid of the corporate and partnership organizational
A company that retains control over one or more other companies.
An interest in an asset held by a trustee for the benefit of another person.
REIT (real estate investment trust)
Real estate investment trust, which is similar to a closed-end mutual
an individual or firm engaged in a high or moderate degree of conversion that results in service output
A company that is controlled by another company through ownership
A closed-end fund that has a fixed termination or maturity date.
Agreement between trustee and borrower setting out terms of bond.
Receipt for goods that are to be held in trust for the lender.
Unit investment trust
Money invested in a portfolio whose composition is fixed for the life of the fund.
This is the person who benefits from the terms of a trust, a will, an RRSP, a RRIF, a LIF, an annuity or a life insurance policy. In relation to RRSP's, RRIF's, LIF's, Annuities and of course life insurance, if the beneficiary is a spouse, parent, offspring or grand-child, they are considered to be a preferred beneficiary. If the insured has named a preferred beneficiary, the death benefit is invariably protected from creditors. There have been some court challenges of this right of protection but so far they have been unsuccessful. See "Creditor Protection" below. A beneficiary under the age of 18 must be represented by an individual guardian over the age of 18 or a public official who represents minors generally. A policy owner may, in the designation of a beneficiary, appoint someone to act as trustee for a minor. Death benefits are not subject to income taxes. If you make your beneficiary your estate, the death benefit will be included in your assets for probate. Probate filing fees are currently $14 per thousand of estate value in British Columbia and $15 per thousand of estate value in Ontario.
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
Employee stock ownership plan (ESOP)
A company contributes to a trust fund that buys stock on behalf of
Arrangement used to finance inventory. A finance company buys the inventory, which is then
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