752 prescribes how liabilities affect a partner's basis, and its regulations discuss the definitions of recourse
The holders of the recourse
, within the meaning of law, were the following:
A borrower faces full recourse
liability if it violates restrictions on sale of the property or interests in the borrower or on secondary financing as described in the loan documentation (commonly referred to as due-on-sale and due-on-encumbrance clauses).
The revised rule provides for a multilevel, ratings-based approach for agreements involving recourse
, direct credit substitutes, and residual interests.
The regulators recognize this problem and have indicated unofficially that if a repurchase is not automatic, in the event of default, and the risk of repurchase can be controlled by the seller, the transaction is not a recourse
When a debt is partially recourse
and partially nonrecourse, it is reasonable to assume that a settlement of the debt, whether by the payment of a lump sum in cash or by a transfer of property, will first be allocated to the nonrecourse portion of the debt.
Interagency guidance issued May 23, 2002, on implicit recourse
provided to asset securitizations.
It is unlikely, from a state law standpoint, that the general partner would be released from personal liability by the firm's creditors for the business's recourse
factor charged an extra 1% for every 10 days beyond 30 days that the receivable was due.
Under a recourse
arrangement, a bank typically commits to cover any initial losses on loans that may occur up to a contractually agreed upon amount.
arrangements have been fashioned involving sales of mortgage and other types of loans.
The courts have found that the offsetting payment structure in a true circular transaction has meant that a default by one party would lead each of the others to default in turn, making it unlikely that any of the parties within the circular transaction (even those with recourse
rights) would disrupt the payment chain.