Dictionary of Banking Terms: commingled funds
commingled funds
- Asset-Based Lending. A borrower's cash collateral account mixed with other accounts kept by the lender.
- Trusts. A common trust fundmanaged by a bank trust department for employee benefit plans, retirement plans of self-employed workers. These funds give the participants greater investment diversification and safety of principal, at lower operating cost for the bank. The Federal Reserve Board has permitted bank trust departments to offer commingled accounts, much like mutual fund, to customers with Individual Retirement Account (IRA).
