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A loan will never be treated as a recourse loan under which of the following con

ID: 2618535 • Letter: A

Question

A loan will never be treated as a recourse loan under which of the following conditions A a loan is part of a wrap around arrangement B a loan reimbursement plan exists C a partner loans money to a partnership D no one bears the economic risk of loss A loan will never be treated as a recourse loan under which of the following conditions A a loan is part of a wrap around arrangement B a loan reimbursement plan exists C a partner loans money to a partnership D no one bears the economic risk of loss A a loan is part of a wrap around arrangement B a loan reimbursement plan exists C a partner loans money to a partnership D no one bears the economic risk of loss

Explanation / Answer

Ans is Option D

If no one bears the economic risk of loss then there is no meaning of recourse facility in the loan.

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