An Armenian walks into a bank in Manhattan, approaches the loan officer and asks for $5,000 dollars for two weeks for an emergency trip to Cyprus. He hands the officer the keys to his brand new "free and clear" Rolls Royce parked at the curb in full view as security until his return in two weeks. The bank checks for ownership etc. and everything is "cool" and the bank accepts the car as collateral for the loan.
The bank's president and its officers all enjoy a good laugh at the Armenian for using a $250,000 Rolls as collateral against a $5,000 loan. An employee of the bank then proceeds to drive the Rolls into the bank's underground garage and the "collateral" there.
Two weeks later, the Armenian returns, repays the $5,000 and the interest, which comes to $15.41. The keys to the car are handed back to him.
The loan officer says, "Sir, we are very happy to have had our business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multimillionaire. What puzzles us is, why would you bother to borrow $5,000?"
The Armenian replies. "Where else in Manhattan can I park my car for two weeks for only $15.41 and expect it to be there when I return?”
The bank's president and its officers all enjoy a good laugh at the Armenian for using a $250,000 Rolls as collateral against a $5,000 loan. An employee of the bank then proceeds to drive the Rolls into the bank's underground garage and the "collateral" there.
Two weeks later, the Armenian returns, repays the $5,000 and the interest, which comes to $15.41. The keys to the car are handed back to him.
The loan officer says, "Sir, we are very happy to have had our business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a multimillionaire. What puzzles us is, why would you bother to borrow $5,000?"
The Armenian replies. "Where else in Manhattan can I park my car for two weeks for only $15.41 and expect it to be there when I return?”