Detailed Notes on 860 cash
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If a transferor hasn't surrendered Charge of a economical asset, derecognition is inappropriate; the asset should be regarded as pledged as collateral to safe an obligation with the transferor.
Finance Co originates unsecured consumer loans. Loans created off as uncollectible are periodically pooled and sold to a collection company.
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Bank Co gets a cash payment for the transfer date, and is entitled to get extra consideration if the transferred pool subsequently generates a return higher than a hurdle charge.
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