the surety does. once you lien it you are removing it from their control into the holding company's control which you are a shear holder and gain liability coverage
if I have a title to my house and I go to the bank and ask for a loan the title is surety for the loan it is not the account. the surety is just the surety.
Collateral (finance)
From Wikipedia, the free encyclopedia
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.[1][2] The collateral serves as protection for a lender against a borrower's default - that is, any borrower failing to pay the principal and interest under the terms of a loan obligation. If a borrower does default on a loan (due to insolvency or other event), that borrower forfeits (gives up) the property pledged as collateral - and the lender then becomes the owner of the collateral. In a typical mortgage loan transaction, for instance, the real estate being acquired with the help of the loan serves as collateral. Should the buyer fail to pay the loan under the mortgage loan agreement, the ownership of the real estate is transferred to the bank. The bank uses a legal process called foreclosure to obtain real estate from a borrower who defaults on a mortgage loan obligation.
Concept of collateral [edit]
Collateral, especially within banking, traditionally refers to secured lending (also known as asset-based lending). More recently, complex collateralization arrangements are used to secure trade transactions (also known as capital market collateralization). The former often presents unilateral obligations, for secured in the form of property, surety, guarantee or other as collateral (originally denoted by the term security), whereas the latter often presents bilateral obligations secured by more liquid assets such as cash or securities, often known for margin. Another example might be to ask for collateral in exchange for holding something of value until it is returned. Some forms of lending are solely based on the strength of the collateral such as gold, jewelry and property. Certain non-conservative lending practices such as lending against antique items or art works are also known to exist.
In many developing countries, the use of collateral is the main way to secure bank financing.[citation needed] The ease of acquiring a loan depends on the ability to use assets such as real estate as collateral.
Top of my head/out of the ass reasoning here...the valuable security is liened into trust (taking it out of the public domain & into the private), the lien has (face) value and the security serves as a form of collateral/secured debt (I think)...
If that reasoning is correct, then the trust may be equivalent to an account holding the security, so the valuable security could be marked in the books of the company as an asset held in trust (account), which would probably make it money of account with its face value being the amount you liened it for.
You can then 'use' this asset to acquire credit...
I don't think I quite have the terminology correct, but my guess is that the lien can be treated as 'like money'/a negotiable instrument, which would make neither the valuable security nor the lien an account as such, but the trust may be considered an account.
Damn it, there goes my relaxing evening...time to hit the books & learn how securities and liens are accounted for :P
I think the 'account,' would simply be the Consolidated Revenue Fund. This 'account,' just happens to be one big PIGGY-BANK shared by all (operative-word, SHARE) ;)
Agreed Derek...I was thinking from the perspective that the valuable security had been liened into a private trust in the context of Eamonn O Brien's question...either way, I doubt the valuable security in itself is an account, but is held in an account, regarded as an asset/debt depending on which side of the accounting you're on
Derek Moran you are correct. Yes the security is your share in the corporation of Canada and yes it can be accessed to discharge your persons negotiable instruments. It does work. One must invoke the correct operation of law. When you do it is amazing. Good luck.