ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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BANKER'S ACCEPTANCE Definition
BANKER'S ACCEPTANCE (BA) is a money market instrument that is issued in discounted form. A banker's acceptance is created when a bank accepts responsibility for payment of business debt by signing a letter of credit. Banker's acceptances are sold to acceptance dealers and may be resold to numerous other parties before the loan is repaid. The investor who last owns the acceptance when the debt becomes due has a right to collect from the borrower. Should the borrower default, the investor can also pursue payment from the accepting bank.
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PURCHASE MONEY AGREEMENT is an agreement under which a person pledges the property or item bought as security.
PUBLIC CORPORATION is a corporation formed by federal, state or local governments for specific public purposes.