In a loan arranged through the assignment of accounts receivable the lender:
A) accepts the actual receivable to be collected.
B) has a lien on the receivables and recourse to the borrower.
C) assumes full risk of default.
D) All of these are correct.

Question

Quizplus · Accepted Answer

In a loan arrangement involving the assignment of accounts receivable, the lender typically has a lien on the receivables and recourse to the borrower if the receivables fail to satisfy the loan obligations. The lender does not usually accept the actual receivable to be collected directly nor assume full risk of default.

In a Loan Arranged Through the Assignment of Accounts Receivable