{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/860/30/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"860","topic_title":"Transfers and Servicing","subtopic":"860-30","subtopic_title":"Secured Borrowing and Collateral","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"860-30-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance on transactions that are accounted for as secured borrowings with a <a href=\"/glossary/t/#transfer\" class=\"term\" title=\"The conveyance of a noncash financial asset by and to someone other than the issuer of that financial asset. A transfer includes the following: Selling a receivable Putting a receivable into a securitization trust Posting a receivable as collateral. A transfer excludes the following: The origination of a receivable Settlement of a receivable The restructuring of a receivable into a security in a troubled debt restructuring.\"><span>transfer</span></a> of <a href=\"/glossary/c/#collateral\" class=\"term\" title=\"Personal or real property in which a security interest has been given.\"><span>collateral</span></a>.</div></div>","snippet":"This Subtopic provides guidance on transactions that are accounted for as secured borrowings with a transfer of collateral.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1533d8e48df0f15ecbf043ab83485bd7c0a2f5a490d04679ec90ec364af11dd6","downloaded_from":"2026-09-10T02:06:53.375Z","last_downloaded_at":"2026-09-10T02:06:53.375Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481208","source_sha256":"d45fb565cbb6b5660e0b323392f01c8b3c8c28ec0d7e5b93d01956b4d3382ce2"}},{"citation":"860-30-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_F890B0C3-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A debtor (obligor) may grant a <a href=\"/glossary/s/#security-interest\" class=\"term\" title=\"A form of interest in property that provides that upon default of the obligation for which the security interest is given, the property may be sold to satisfy that obligation.\"><span>security interest</span></a> in certain assets to a lender (the secured party) to serve as collateral for its obligation under a borrowing, with or without <a href=\"/glossary/r/#recourse\" class=\"term\" title=\"The right of a transferee of receivables to receive payment from the transferor of those receivables for any of the following: Failure of debtors to pay when due The effects of prepayments Adjustments resulting from defects in the eligibility of the transferred receivables.\"><span>recourse</span></a> to other assets of the obligor. </span></span><span class=\"sfragment\" id=\"sfr_F890B239-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> An obligor under other kinds of current or potential obligations, for example, interest rate swaps, also may grant a security interest in certain assets to a secured party. </span></span></div></div>","snippet":"A debtor (obligor) may grant a security interest in certain assets to a lender (the secured party) to serve as collateral for its obligation under a borrowing, with or without recourse to other assets of the obligor. An …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de2493b040fe7435ba279b8f211ce3572a332336423b7536accf18fe7d72483e","downloaded_from":"2026-09-10T02:06:53.375Z","last_downloaded_at":"2026-09-10T02:06:53.375Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481208","source_sha256":"d45fb565cbb6b5660e0b323392f01c8b3c8c28ec0d7e5b93d01956b4d3382ce2"}},{"citation":"860-30-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_F890B381-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If collateral is transferred to the secured party, the custodial arrangement is commonly referred to as a pledge. </span></span><span class=\"sfragment\" id=\"sfr_F890B4AC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Secured parties sometimes are permitted to sell or repledge (or otherwise transfer) collateral held under a pledge. </span></span><span class=\"sfragment\" id=\"sfr_F890B5D6-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The same relationships occur, under different names, in transfers documented as sales that are accounted for as secured borrowings (see paragraph <a href=\"/asc/860/30/#860-30-25-2\" class=\"xref\">860-30-25-2</a>). </span></span></div></div>","snippet":"If collateral is transferred to the secured party, the custodial arrangement is commonly referred to as a pledge. Secured parties sometimes are permitted to sell or repledge (or otherwise transfer) collateral held under …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:270cff9329762dd94844d64183dddb27d2b84d57e2e8fbac893a5509e437f789","downloaded_from":"2026-09-10T02:06:53.375Z","last_downloaded_at":"2026-09-10T02:06:53.375Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481208","source_sha256":"d45fb565cbb6b5660e0b323392f01c8b3c8c28ec0d7e5b93d01956b4d3382ce2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78ed06d815c879751ebd6048148048a16a3f261d015ab8a3b474b953214ad0c5","downloaded_from":"2026-09-10T02:06:53.375Z","last_downloaded_at":"2026-09-10T02:06:53.375Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481208","source_sha256":"d45fb565cbb6b5660e0b323392f01c8b3c8c28ec0d7e5b93d01956b4d3382ce2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6cba50b3f07951d52b18a53e64c6105c1636fc6d1457c2d78ce7774b5eb49a8","downloaded_from":"2026-09-10T02:06:53.375Z","last_downloaded_at":"2026-09-10T02:06:53.375Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481208","source_sha256":"d45fb565cbb6b5660e0b323392f01c8b3c8c28ec0d7e5b93d01956b4d3382ce2"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6cba50b3f07951d52b18a53e64c6105c1636fc6d1457c2d78ce7774b5eb49a8","downloaded_from":"2026-09-10T02:06:53.375Z","last_downloaded_at":"2026-09-10T02:06:53.375Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481208","source_sha256":"d45fb565cbb6b5660e0b323392f01c8b3c8c28ec0d7e5b93d01956b4d3382ce2"}}