§ 107.201. Terms Defined.

The term “with recourse” means, in connection with the sale of a loan or a participation interest in a loan, an agreement or arrangement under which the purchaser is to be entitled to receive from the seller a sum of money or thing of value, whether tangible or intangible (including any substitution), upon default in payment of any loan involved or any part thereof or to withhold or to have withheld from the seller a sum of money or any thing of value by way of security against default. The recourse liability resulting from a sale with recourse shall be the total book value of any loan sold with recourse less (a) the amount of any insurance or guarantee against loss in the event of default provided by a third party and (b) the amount of any loss resulting from a recourse obligation entered on the books and records of the association.

HISTORY

1. Change without regulatory effect renumbering former Section 171 to Section 107.201 (Register 87, No. 14). For prior history, see Register 82, No. 24.

Note

Note: Authority cited: Section 5255, Financial Code. Reference: Section 6712, Financial Code.