Under time-sales financing, the bank purchases instalment contracts at a discount from their full value and takes as security an assignment of the manufacturer/dealer's interest in the conditional sales contract.

Question

Quizplus · Accepted Answer

This statement accurately describes time-sales financing where the bank purchases instalment contracts at a discount and takes security through an assignment of the manufacturer/dealer's interest in the contract.

Under Time-Sales Financing, the Bank Purchases Instalment Contracts at a Discount