• If the loans are sold without recourse, then the bank has no further potential liability with the loans sold. If the loans go bad, the buyer cannot ask the bank to make up the difference.
• Without the lender having any right to seek payment or seize assets in the event of nonpayment from anyone other than the party (such as a special-purpose entity) specified in the debt contract.
Teaching Children the Financial Facts of Life: Showing the importance of saving, spending wisely and sharing with others More...
A happy person is not a person in a certain set of circumstances, but rather a person with a certain set of attitudes. - Hugh Downs
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