# ASC 860-30-05: Transfers and Servicing — Secured Borrowing and Collateral — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/860/30/#05-overview-and-background)

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.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

Source downloaded (UTC): 2026-09-10T02:06:53.375Z to 2026-09-10T02:06:53.375Z

Record version: sha256:d6cba50b3f07951d52b18a53e64c6105c1636fc6d1457c2d78ce7774b5eb49a8

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 860-30-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/860/30/#05-overview-and-background)

SEC content: no

##### [860-30-05-1](https://asc.understandingaccounting.org/asc/860/30/#860-30-05-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:06:53.375Z to 2026-09-10T02:06:53.375Z

Record version: sha256:1533d8e48df0f15ecbf043ab83485bd7c0a2f5a490d04679ec90ec364af11dd6

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This Subtopic provides guidance on transactions that are accounted for as secured borrowings with a [transfer](https://asc.understandingaccounting.org/glossary/t/#transfer "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.") of [collateral](https://asc.understandingaccounting.org/glossary/c/#collateral "Personal or real property in which a security interest has been given.").

##### [860-30-05-2](https://asc.understandingaccounting.org/asc/860/30/#860-30-05-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:06:53.375Z to 2026-09-10T02:06:53.375Z

Record version: sha256:de2493b040fe7435ba279b8f211ce3572a332336423b7536accf18fe7d72483e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


A debtor (obligor) may grant a [security interest](https://asc.understandingaccounting.org/glossary/s/#security-interest "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.") in certain assets to a lender (the secured party) to serve as collateral for its obligation under a borrowing, with or without [recourse](https://asc.understandingaccounting.org/glossary/r/#recourse "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.") to other assets of the obligor. 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.

##### [860-30-05-3](https://asc.understandingaccounting.org/asc/860/30/#860-30-05-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:06:53.375Z to 2026-09-10T02:06:53.375Z

Record version: sha256:270cff9329762dd94844d64183dddb27d2b84d57e2e8fbac893a5509e437f789

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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 a pledge. The same relationships occur, under different names, in transfers documented as sales that are accounted for as secured borrowings (see paragraph [860-30-25-2](https://asc.understandingaccounting.org/asc/860/30/#860-30-25-2)).