Safe Custody Receipt Leasing: The Pros and Cons of Safe Custody Receipts

The idea of ​​custody is not new. People put things somewhere to “keep” them all the time. Usually it’s just something they want to keep safe somewhere that’s considered safe.

However, banks and other institutions are dedicated to keeping some valuables safe. Sometimes this is done as a lockbox. Other times, the item may be sent for safekeeping. Often the institution will issue a document called an escrow receipt to ensure they have documentation that your item is there. These are actually monetary instruments that can be traded.

The idea is that ownership of the secure receipt can be transferred from one party to another. Whoever has the receipt has access to the goods. Therefore, it is actually the asset that is transferred. These documents can also be borrowed and leased to create cash flow. Ownership is usually transferred by signature and possession. Assets can be anything from other monetary instruments to valuable jewelry. Depending on the intent of the asset owner, it may be more careful to obtain a receipt rather than store a certain item. For example, in the case of jewelry, if the intention is to liquidate it, then it may be easier to get a receipt and rent or sell it than the jewelry itself. Wearing valuable jewelry can not only be dangerous, it can also be uncomfortable.

There are many scams related to these types of receipts. For example, a scammer posing as a legitimate broker convinces the investor to issue an escrow receipt over which he has power of attorney. The fraudster then has access to whatever assets the receipt represents. The idea is that you will only access it for investment purposes and will often encourage the owner to keep the original receipt in a safe place and get a receipt for that. This is designed to make the owner feel more secure, but it really has no effect on keeping the scammer away from the assets.

These receipts are not a bad investment, whether for lease or sale, but they must be approached with caution. Scams involving them abound, and it can be easy to get caught up in some sticky situations. Use your good judgment and follow the paper trail to stay out of trouble. To learn more about investing in investment opportunities not normally found on the market, click here!