TeachMeFinance.com - explain net worth certificate
net worth certificate -- an instrument authorized by the Garn-St Germain Depository Institutions Act of 1982, to assist thrift institutions in meeting minimum regulatory net worth requirements. A thrift participating in the program issued net worth certificates to the former Federal Savings and Loan Insurance Corporation (FSLIC) in return for the FSLIC's promissory notes. The notes could be counted as part of the institution's net worth. As the institution regained financial health, it redeemed the net worth certificates by returning the FSLIC's promissory notes.
About the author
Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.