What Is a Transfer? A transfer involves the movement of assets, monetary funds, and/or ownership rights from one account to another. A transfer may require an exchange of funds when it involves a change in ownership, such as when an investor sells a real estate holding. In this case, there is a transfer of title
What Is a Transferable Letter of Credit? A transferable letter of credit is a type of financial guarantee, known as a letter of credit, that additionally allows the first beneficiary to transfer some or all of the credit to another party, which creates a secondary beneficiary. The party that initially accepts the transferable letter of
What Is a Transfer Agent? A transfer agent is a trust company, bank, or similar institution assigned by a corporation for the purposes of maintaining an investor’s financial records and tracking each investor’s account balance. The transfer agent records transactions, cancels and issues certificates, processes investor mailings, and handles a host of other investor problems
What Is a Transfer of Mortgage? Transfer of mortgage is a transaction where either the borrower or lender assigns an existing mortgage (a loan to purchase a property—usually a residential one—using the property as collateral) from the current holder to another person or entity. Homeowners who are unable to keep current on their mortgage payments
What Is a Transfer of Physical Assets (TPA)? The term transfer of physical assets (TPA) refers to the sale of property that involves a change in ownership of a mortgage loan sponsored by the U.S. Department of Housing and Urban Development (HUD). The sale of qualifying properties held with HUD that are insured by the
What Is Transfer of Risk? A transfer of risk is a business agreement in which one party pays another to take responsibility for mitigating specific losses that may or may not occur. This is the underlying tenet of the insurance industry. Risks may be transferred between individuals, from individuals to insurance companies, or from insurers
What Is Transfer on Death (TOD)? The transfer on death (TOD) designation lets someone receive assets at the time of their benefactor’s death without going through probate. A TOD designation also lets the account holder or security owner specify the percentage of assets each person receives, which helps the executor distribute the person’s assets after death.
What Is a Transferor? When two parties agree to a transfer, one party is known as the transferor, and one is known as the transferee. The transferor is the party making a transfer to another party as part of a legal arrangement. Terms and conditions accompany the transfer to assure both sides fulfill their obligations
What Are Transfer Procedures? Transfer procedures are the means by which the ownership of a stock (or other security) moves from one party to another. This process is effected by a transfer agent, who follows a detailed, documented series of steps governed by the securities and exchange commission (SEC) to ensure that a transaction has
What Is Transfer Risk? Transfer risk is defined as the threat that a local currency can’t be converted into another nation’s currency due to changes in nominal value or because of specific regulatory or exchange restrictions. Transfer risk, also known as conversion risk, may arise when a currency is not widely traded and capital controls
