Schedule F Part 1

emelndalgicemelndalgic
in Odomirok.14-F

Columns 14 and 15 are confusing me. Both have "amount of assets pledged" or something else. Is amount of assets pledged to be entered into both columns, so twice (and plus amounts from those other things)?

Comments

  • grahamgraham

    The way I interpret those column headings is:

    • column 14: enter the amounts related to Letters of Credit
    • column 15: enter the amounts related to Collateral

    That's because "Letters of Credit" and "Collateral" are 2 different things that represent an ability to pay. There should be no overlap between the quantities entered in those 2 columns. I'm not sure how they came up with that strange wording.

    Definition of "Letter of Credit":

    • A letter of credit, or "credit letter" is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.

    Definition of "Collateral":

    • Collateral is an asset that a lender accepts as security for a loan. If the borrower defaults on the loan payments, the lender can seize the collateral and resell it to recoup the losses.
  • emelndalgicemelndalgic

    Thanks

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