Definition of self liquidating debt Xxx chat line free trial services
Although technically, few loans are actually legally named "self-liquidating," this is more appropriately called bankers slang or a feature of a loan or credit facility.A business might use a self-liquidating loan (or assets) to purchase extra inventory in anticipation of the holiday shopping season.A bond used to finance the purchase of assets intended to be sold within a short period of time.For example, a company may issue a self-liquidating bond to pay for its inventory, which it intends to quickly sell.The translations of self-liquidating from English to other languages presented in this section have been obtained through automatic statistical translation; where the essential translation unit is the word «self-liquidating» in English. It refers to a loan that is used to generate proceeds that are in turn used to repay the loan.The repayment schedule and maturity of a self-liquidating loan are designed to coincide with the timing of the assets' income generation.These loans are intended to finance purchases that will quickly and reliably generate cash.
Temporary and proposed regulations under section 108 of the Code provide rules regarding partnerships and S corporations.
This ruling provides guidance, in the form of examples, on what constitutes an unforeseeable emergency distribution under section 457(b) of the Code and regulations section 1.457-6(c).
The ruling also applies the same standards to distributions from a nonqualified deferred compensation plan subject to section 409A.
The company borrows money to buy more materials to take advantage of the increasing demand of the busy season.
Then when business slows down the company will have less of a need for borrowed funds to finance short-term assets like inventory accounts – the need for financing will decline as the need for inventory declines. “Analysis for Financial Management”, Mc Graw-Hill Irwin, New York, NY, 2007.