Bailment

Dictionary Says

Definition of 'Bailment'

The contractual transfer of possession of assets or property for a specific objective. In bailment, the deliverer of the asset is the bailor, and the receiver is the bailee. In a bailment transaction, ownership is never transfered, and the bailor is generally not entitled to use the property while it's in possession of the bailee. In these ways, bailment differs from gifting and leasing.
Investopedia Says

Investopedia explains 'Bailment'

Bailment is a legal relationship between two parties, whereby the owner retains full rights to the assets or property but the possesses the property. For example, when a bank holds a borrower's asset as collateral for a secured loan, this is a form of bailment. In this case, the bank is the bailee and the borrower is the bailor.

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Related Definitions

  1. Secured Debt

    Debt backed or ...
  2. Receiver

    A person ...
  3. Retail Lender

    A lender who ...
  4. Collateral

    Property or ...
  5. Lien

    The legal right ...
  6. Lease

    A legal document ...
  7. Consignment

    An arrangement ...
  8. Bailee

    An individual ...
  9. Bailor

    An individual ...
  10. Liquidator

    In the most ...

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