WITH RECOURSE Sample Clauses
The "WITH RECOURSE" clause establishes that the party transferring a financial instrument, such as a loan or receivable, remains liable if the instrument is not paid by the debtor. In practice, this means that if a lender sells a loan to another party and the borrower defaults, the buyer can demand repayment from the original seller. This clause is commonly used in factoring or assignment of receivables, ensuring that the risk of non-payment ultimately stays with the seller. Its core function is to allocate credit risk, providing the buyer with additional security and recourse in the event of default.
WITH RECOURSE. Subject to the terms and provisions of any applicable underlying agreement between Assignor and Assignee , Assignor further agrees to guaranty the payment promptly when due of the amount of each and every installment payable under the Agreement and the payment on demand of the entire unpaid balance at the date of default in the event of any default by Buyer under the Agreement, without first requiring Assignee to proceed against Buyer or any other person or any security.
WITH RECOURSE. The term ith 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 re- ceive from the seller a sum of money or thing of value, whether tangible or in- tangible (including any substitution), upon default in payment of any loan involved or any part thereof or to with- hold or to have withheld from the sell- er a sum of money or anything 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: