There are very few Safe Keeping Receipt companies that can work with individual and corporate assets as it is limited to Banks and Financial institutions. There is only one group we know of who has issued and secured Safe Keeping Receipts for our clients, which is www.safekeepingreceipts.com. Basically if your company needs funds quickly on an international project, you may be able to cash in your safe keeping receipt or have one issued on the assets of the project.
In several cases where we have been involved with producing Bonds for clients for financing oil projects and emerging market financing, we have used the assets of companies as collateral within a trust. This concept therefore was not foreign to our staff when we began referring clients for a safe keeping receipt. Especially when some of our financial bond holders had created a safe keeping receipt (SKR) for the bonds we actually constructed. Basically by using proof of ownership of valuable assets as collateral, one can get a loan.
However, this proof can sometimes be requested in the form of a receipt from an institution called a SKR.
Your Safe Keeping Receipt can be issued by a bank, depository, or other financial institution (who hold your valuables, securities, commodities, land titles, gems, coins, whatever it may be securely in the institution. This is done without giving up control, its proof of the asset and security of it.)
You enter into a loan, bond, or agreement to monetize the assets via a loan, such as a medium term note, bond, etc. (You remain the owner of the assets unless you default on the loan.)
What types of assets can make SKR’s?
- real estate holdings
- shares, bonds, stocks, or deeds
- mining licenses
- oil ownership
The owner of a SKR may monetize this instrument much like a SBLC, Bond or BG and use these funds as an alternative funding source for projects.
Safekeepingreceipts.com SKR’s are issued with an ISIN/SEDOL code and can be verified in the London Stock Exchange – SEDOL screen as well as having the capability of SWIFT Transfers.
The next important aspect is the marketability of the SKR, as their SKR’s are issued with an ISIN/SEDOL code and can be verified in the London Stock Exchange – SEDOL screen as well as having the capability of SWIFT Transfers. Once monetized usually for a term of 1 year and 1 day unless otherwise agreed upon, the safekeeping receipt is then pledge to the monetizing entity.
With these very crucial points in place, monetizing your safekeeping receipt can be a safe transaction because in most circumstances, you don’t move your asset or give up control (as it is held by a Fiduciary in Safekeeping).
SKR providers, Safe Keeping Receipt issuers, SKR monetization and other articles and guides are available on request.