Limited Purpose Trust Company

AAA

DEFINITION of 'Limited Purpose Trust Company'

A trust company that has been chartered by the state to perform specific trust functions. These functions can include acting as a depositor or safekeeper for securities or mortgages. The Participants Trust Company is an example of a mortgage depositor trust.

INVESTOPEDIA EXPLAINS 'Limited Purpose Trust Company'

The Depository Trust Company (DTC) in New York is another example of a limited purpose trust company. This trust holds securities in safekeeping for banks and investment firms. This allows them to make book-entry settlements on their trades.

RELATED TERMS
  1. Bank

    A financial institution licensed as a receiver of deposits. There ...
  2. Trust

    A fiduciary relationship in which one party, known as a trustor, ...
  3. Trust Company

    A legal entity that acts as fiduciary, agent or trustee on behalf ...
  4. Licensed For Reinsurance Only

    A license that allows a company to engage in services related ...
  5. Insurance Regulatory Information ...

    A collection of databases and tools used to analyze the financial ...
  6. Financing Entity

    The party in a financing arrangement that provides money, property, ...
Related Articles
  1. Options & Futures

    The REIT Way

  2. Home & Auto

    Simple Ways To Invest In Real Estate

  3. Bonds & Fixed Income

    The Impact Of Interest Rates On Real ...

  4. Economics

    Indian Banking Regulations -- What You ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center