A liquidating account is a specific budget account that tracks all cash inflows and outflows related to direct loan obligations or loan guarantee commitments made before October 1, 1991. These accounts are reported in the budget on a cash basis, meaning they reflect actual cash transactions rather than accounting estimates or projections.
Liquidating accounts are primarily used in government finance and budgeting. They are relevant in contexts involving federal loans and guarantees, particularly those established before the specified date. Legal practitioners may encounter these accounts when dealing with financial regulations, government contracts, or budgetary compliance. Users can manage related forms and procedures through resources like US Legal Forms, which offers templates for various legal documents.
Here are a couple of examples of abatement:
For instance, if a government agency issued a loan guarantee in 1990, the financial activities related to that guarantee would be recorded in a liquidating account. This includes any repayments received or disbursements made until the account is fully settled. (Hypothetical example.)
| Term | Definition | Key Differences |
|---|---|---|
| Liquidating Account | A budget account for cash flows related to specific loans or guarantees. | Specific to loans made before October 1, 1991. |
| Loan Guarantee | A promise by a third party to cover a borrower's loan obligation. | Loan guarantees can be ongoing and do not have the same reporting requirements. |
If you are dealing with a liquidating account, it is important to understand the specific cash flows involved. You may want to consult financial records or seek assistance from a financial advisor. For managing related documentation, consider using US Legal Forms to access ready-to-use templates. If your situation is complex, professional legal help may be necessary.
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| Attribute | Details |
|---|---|
| Applicable Loans | Direct loans or guarantees made before October 1, 1991 |
| Reporting Basis | Cash basis |
It tracks cash transactions related to specific government loans or guarantees.