Definitions.

CFR · 2024-01-01 · US · Title 12

For the purposes of this part, the following definitions apply: (a) (b) (c) (1) Retains some risk of loss from the transferred asset for any cause except the seller's breach of usual and customary warranties or representations designed to protect the purchaser against fraud or misrepresentation; or (2) Has an obligation to make payments to any party resulting from: (i) Default on the lease by the lessee or guarantor or any other deficiencies in the lessee's performance; (ii) Changes in the market value of the assets after transfer; (iii) Any contractual relationship between the seller and purchaser incident to the transfer that, by its terms, could continue even after final payment, default, or other termination of the assets transferred; or (iv) Any other cause, except that the retention of servicing rights alone shall not constitute recourse.

official document · source cfr-2024 · id 12:§ 616.600