Unclaimed property: a credit risk liability
Article Abstract:
It is essential for consumer credit companies to be familiar with abandoned property law. When assessing the creditworthiness of potential customers, credit issuers should strive to determine whether a company applying for credit has a considerable liability for unreported abandoned property. Also, if they are buying businesses based on book value, credit firms should be alert to the danger of a significant contingent liability for unreported abandoned property taken out of the balance sheet or taken into income. Credit issuers should perform proper due diligence to avoid such liability. They should also be guided by uniform property laws, which generally seek to restore lost properties to their owners, prevent claims by abandoned property owners after such property has been returned to the state, and ensure that the economic benefits of abandonment go to the state and the people rather than to the holder. The Uniform Unclaimed Property Act of 1995 is discussed.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1996
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Possibility of merger raises host of questions
Article Abstract:
The line dividing the banking and insurance businesses is blurring, which brings with it an array of uncertainties, challenges and even opportunities for both sides. Questions surface when one considers the many differences between the two, with banks making loans upfront and collecting interest in arrears and insurance companies collecting premiums upfront and paying claims in arrears. However, similarities also exist, particularly in the areas of underwriting, renewals and vulnerability to technological changes. Another issue to wrestle with is the challenge of regulation. Banking and insurance are usually regulated by different agencies, which may give rise to problems later. The conflict of cultures could also be a source of difficulty in the future. Despite these differences, those involved should proactively find ways to benefit from this development.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1998
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Access to credit improves for women business owners
Article Abstract:
Results of a 1998 study conducted by the National Foundation for Women Business Owners reveal that women business owners are more frequently seeking financing through bank credit. The proportion of women-owned firms that applied for financing jumped from 27% in 1996 to 33% two years later while the proportion of women with bank credit went from 46% to 52%. Trend analysis shows that women entrepreneurs are employing bank credit for a variety of applications, including expansion capital, operating expenses and debt reduction. However, women entrepreneurs still have less bank credit than their male counterparts. Moreover, women business owners of color have less access to capital than their Caucasian women counterparts. These inequalities should be addressed immediately.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1999
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