Information on Safe Keeping Receipt (SKR) - Collateral For Alternative Financing

Safe Keeping Receipt (SKR) - Collateral For Alternative Financing
 
Safe Keeping Receipt's, or SKR's, are bank instruments that are on the rise as collateral for alternative financing. A SKR is a financial instrument that is issued by a safe keeping facility, bank or storage house. In storage, assets or other valuables are in a safe, secured and protected area. The issuer of the SKR takes the responsibility of being the legally responsible custodian. Check with your institution or safe keeping storage facility as some require fees for these services.
 
Examples of asset skr's that can be monetized:
• Fur SKR
• Collectible Art SKR
• Gold SKR
• Above Ground Assets SKR
• Commercial Property SKR
• Antiques SKR
• Valuable Documents SKR
• Precious Metals or Gems SKR
 
The issuer of the SKR is not the legal owner and therefore, must return the asset to the owner upon request. Who can obtain an SKR? Individuals, corporations, companies, organizations and trusts to name a few. The owner of an SKR may monetize this instrument much like an SBLC, LC, Bond or BG and use these funds as an alternative funding source for projects. Most issued SKR are capable of SWIFT transfers however, some may require an additional MT 760 simultaneous to the transfer of funds in the transaction.
 
Monetizing and SKR is the process of converting the financial instrument into a legal tender transaction. Depending upon the monetizing bank, certain additional conditions may apply. For instance, is the asset free and clear, meaning; is the title free and clear listed on the SKR? Aside from the validity of the SKR, free title is the single most important aspect of monetizing. The next important aspect is the capability of a SWIFT MT 760. Once monetized usually for a term of 1 year and 1 day unless otherwise agreed upon, the safe keeping receipt is then completed to the originating issuer.
 
With these very crucial points in place, monetizing your safe keeping receipt can be a safe transaction because in most circumstances, you don't move your asset or give up control. Any fees associated with monetizing your SKR should be paid out of proceeds and not upfront. For many reasons, you should never make arrangement to SWIFT or transfer your SKR to any one or company without first having a contract in place or knowing the company you are dealing with. Monetizing your SKR can be a solution to alternative conventional financing.
 
Kelly Willett is the COO of J.W. McCartney & Company. With over 20 years of industry and private lending experience, JWM offers innovative as well as alternative solutions to funding using monetizing and issuing instruments. Visit [http://www.jwmccartney.com] for more detailed information. Disclosures: Advice given is neither legal or financial. JWM are not securities brokers or imply the same.
Article Source: http://EzineArticles.com/?expert=Kelly_Willett
 
 
Article Source: http://EzineArticles.com/4808637

Safe Keeping Receipt Fraud – Be On Your Guard

 

 
 
A safe keeping receipt is basically a document that is given to a customer to indicate that a bank is holding their valuables. This could be securities (like stock or bonds) or commodities (like gold or gems). This is not like depositing an amount of money in the bank. With a safekeeping receipt, the bank is not allowed to do anything with the valuable except store it. Safe keeping receipt can be abbreviated SKR. Sometimes an SKR is used interchangeably with IDR, or an International Depository Receipt. There is a current scam going around involving safe keeping receipt fraud.
 
An international depository receipt is a document that certifies that a customer has purchased stock from a different country. Banks started issuing these in the 1970′s to facilitate trading of international securities. Only the person issued the SKR can do anything with the valuables left with the bank, unless power of attorney is granted to allow access to the securities or commodities. The SKR fraud is executed when a con artist tries to convince you that you can give them money in exchange for this sort of bank guarantee or letters of credit. Often, unsuspecting consumers are offered a certified copy of a SKR by a trading bank.
 
Another form of this safe keeping receipt fraud is when the conman gets you to sign power of attorney over to them, allowing them to set up or clean out accounts in your name. Still another version is if you already have a SKR. If you sign it over to this grifter, it can be used by him as security for a loan for which you are responsible. In any of these scams, there are some terms that can throw up a red flag for you. Be careful if anyone tells you that they need you to sign over “power of attorney” to them. When someone promises you a “prime bank guarantee” from a “trading bank,” you should also beware.
 
SKR fraud can even extend to a “bank representative” offering to hold your current SKR and issue you a second receipt that certifies that this second bank is holding your original SKR. Consumers should fully investigate any business having to do with these receipts. Chances are it is an attempt at a fraudulent interaction with you.
 
Sean Johnson is an Investment Advisor for http://www.iedc-consulting.com an Investment Referral Service for investors requesting information on specific investments.

Looks like you have been looking at the same pages I have Ponee ... Based upon my research thus far, and upon my understanding of investment regulations, I would consider any offer of an SKR that did not originate from a financial institution and was not offered through a licensed broker highly suspect.

Kevin, do you want to add in your info that you forwarded to me?

Ah, thank you Ponee, now I have a better understanding of those SKR's (Safe Keeping Receipt's).

Here is another discussion on SKR's:

http://www.wisegeek.com/what-is-a-safekeeping-receipt.htm

A safekeeping receipt is a statement from a financial institution that confirms it is holding assets for safekeeping, and will maintain them separate from other assets and return them on demand. Safekeeping services are available from many financial institutions, usually for a fee, as they cannot use those assets in investment activities and thus have no way to generate a profit from them. The safekeeping receipt should be stored in a safe place as it provides a legal record of the deposit.

Assets in storage can include stocks, bonds, precious metals, and cash. In the safekeeping receipt, the financial institution indicates that it holds these assets on behalf of the owner, does not consider them part of its own assets, and cannot use them in financial activities. It also acknowledges a responsibility to return those assets on demand. With something like a safe deposit box where the institution does not know the contents, the safekeeping receipt may include a liability release; if something in the safe deposit box is damaged, the bank is not responsible because it could not control the contents.

This document creates a fiduciary duty on the part of the institution. It is responsible for taking reasonable steps to protect the assets in storage. These can include the use of security measures, unique identifying codes to prevent unauthorized access, and other steps recommended and practiced by the industry. If the institution fails to protect the assets, it can be held legally liable and may be sued for damages to replace the assets or compensate the owner for the lost value.

As long as assets are in safekeeping, the owner should keep the receipt. It is advisable to keep receipts that document deposits, assets in safekeeping, and similar financial activities in one location. If a owner dies, this will make it easier to locate all his assets and make sure they are counted as part of the estate. The safekeeping receipt can also be important in the event of a death, as the institution may want to see it, along with a death certificate, before it will release the assets.

If a financial institution does not automatically provide a safekeeping receipt, the customer can ask for one. It is also possible to request a duplicate or replacement copy. The institution may charge a fee for this. When banks sell or merge with others, all assets in safekeeping should transfer smoothly. Customers should receive a notice about the new ownership with new contact information.

Ponee and Kevin, this is helpful, thank you!!

 Thank you both, Ponee & Kevin!  I was too tired last night to research, but I should have, because I woke up thinking about it so much last night.  Let us know if you find out anything else and I will also be researching and making a few calls myself today.  We have to stick together, we have all been here too long to loose this!