Business, Legal & Accounting Glossary
A type of demand loan where the lender is a high-income individual issuing debt to a low-income relative. Crown Loans were named after Henry Crown, who is the first known individual to have used this type of loan. In 1984, the US Supreme Court ruled that these demand loans would be subject to the market rate of interest or gift taxes because of the substantial tax benefits that they offered.
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This glossary post was last updated: 16th November, 2021 | 0 Views.