Pledging Installment Obligations

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1990-08-03
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For some installment sellers, the installment obligation is viewed as an investment asset and is not pledged or assigned unless financial reverses occur. For others, an installment obligation represents economic value to be enjoyed by pledging or assigning the obligation as collateral on a loan or to secure a financial commitment otherwise. Recent legislation has imposed a far more limiting set of rules on using an installment obligation to secure a further economic advantage.

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