Generally, an SKR by itself is not “negotiable” like a check – it’s tied to you and the asset. However, you can assign rights over the SKR to a third party (for example, a lender can be given claim to the asset under certain conditions). If needed, Prominence Bank can re-issue or amend the SKR to name a particular beneficiary (like “SKR held on behalf of Client X, pledged to Lender Y”). But you wouldn’t, say, sign over an SKR freely like a bearer bond; there’s a process to acknowledge any transfer of rights. Most times, the SKR stays in your name and you simply give a security interest to a lender via separate documents. The SKR can be verified by other banks, as mentioned, through SWIFT confirmation. Also, if you wanted to fully transfer ownership of the underlying asset to someone, we could accommodate that by closing out the SKR with you and issuing a new SKR to the new owner (once they become our client and all compliance is done). In summary, SKRs are flexible in usage but not a “freely tradable” paper – they are evidence of custody and are handled with secure communications for any third-party reliance.
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