The collateral behind Britain's American loan

The agreement pledged American securities and British-owned insurance assets without transferring day-to-day control of the companies. Listed and unlisted securities, insurance-company stock, and earnings from American branches together supplied the collateral and repayment stream. Interest and dividend income serviced a three-percent loan scheduled to mature in fifteen years, with a possible five-year extension if two-thirds of the principal had been repaid. Funds could be drawn at roughly $100 million a month as Britain's outstanding pre-Lend-Lease war-supply bills came due, while Parliament had to preserve special Treasury powers for the life of the loan.