borrowback

English dictionary entry

Meanings

noun
  1. An arrangement in which an asset is sold or given to another, and then borrowed back from the trust or person to whom it was sold or given. Typically, this is done either to take advantage of a lower tax rate on the part of the one to whom the asset is given, or to allow a trust to earn a higher rate of interest than that available from a bank.

Word forms

borrowback borrowbacks borrow-back

Etymology

From borrow + back.

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