A DISC can own various types of financial assets. These assets can constitute qualified export assets for purposes of the DISC's 95 percent assets test.l Moreover, interest on these assets can constitute qualified export receipts for purposes of the DISC's 95 percent gross-receipts test.2
Financial assets encompass monetary assets, such as cash and bank deposits, and debt obligations, both long-term and short-term. Six specific financial assets are within the scope of the DISC provisions:
1. accounts receivable;3
2. Eximbank obligations;4
3. FCIA obligations;5
4. PEFCO obligations;6 1
5. working capital;7 and
6. transitional funds in excess of working capital.8
The first of these financial assets, i.e., accounts receivable, is so important that it merits a separate chapter. Receivables are discussed in chapter 5, and the remainder of the financial assets are discussed in this chapter.
1. §§ 992(a) (1)
(B),993(b).
2. §§992(a)(I)(A),993(a)(I)(F). l
3. §993(b)(3).
4.§993(b)(7)..
5. Id.
6. §993(b) (8).
7. § 993(b) (4).
8. §993(b) (9).
