The instructions for “Loans Transferred with Recourse” tell us not to include loan participations transferred with substantial recourse. Why?
• If a loan is transferred with “substantial recourse” per GAAP, the credit union is required to keep the loan on its books. There would be a loan booked, but no contingent liability. 11C. If a credit union uses an open-end loan form (such as Loanliner) for secured loans, is the difference between the approved limit and the outstanding balance reportable as an unfunded commitment? [Account 816] • Yes. Credit unions using open-end loan forms should reported the difference between approved limits and outstanding balances under “Other Unfunded Commitments”.
Related Questions
- I am transferring to another university and already have a Federal Stafford Loan with my current university. Can the remaining loan money for this year be transferred to my new university?
- The instructions for "Loans Transferred with Recourse" tell us not to include loan participations transferred with substantial recourse. Why?
- How will a loan be transferred to the winning bidder?
