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What Does In-specie Mean?

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Akshay Kalbag answered
In specie is a term commonly used in business. It is mostly used in the context of the distribution of assets or that of the repayment of loans. A company or corporation, therefore, might distribute the securities which it owns to its shareholders or stockholders. This is done without first converting the securities into cash. Thus the distribution of the assets is in the actual form that is taken by the asset, rather that first being converted into another form.

Similarly, assets other than cash might also be loaned. In this case, the borrower of the asset other than cash is required to repay the loan. He or she can repay the loan by returning the self-same assets (or any other assets which are generically similar to the one he or she has borrowed).

In case of a loan; the term in-specie may also be used in cases where the assets to be delivered are specified. This is irrespective of the fact the assets which are lent are quite different from those which are specified. In this case, the word in specie simply means the assets meant for the repayment of the loans are in the actual form as those specified in the contract, rather than in the actual form as the assets which were originally loaned.

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