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Assigned w/o recourse?

New Contributor

Assigned w/o recourse?

I recently sign some contracts for an auto loan at a Toyota Dealership and I noticed on the bottom of the contract its has an X by assigned without recourse? What exactly does this mean about the loan approval? Also there are spots without any x's next to them that say assigned with recourse and assigned with limited recourse. Definitions please??


Starting Score: 603 4/3/2011
Current Score: 633 6/02/2011
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New Contributor

Re: Assigned w/o recourse?

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Starting Score: 603 4/3/2011
Current Score: 633 6/02/2011
Goal Score: 750


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Valued Contributor

Re: Assigned w/o recourse?


jmontes77029 wrote:

I recently sign some contracts for an auto loan at a Toyota Dealership and I noticed on the bottom of the contract its has an X by assigned without recourse? What exactly does this mean about the loan approval? Also there are spots without any x's next to them that say assigned with recourse and assigned with limited recourse. Definitions please??


1- Consult google, an attorney, or ask the car dealership finance guy. (he would probably know better then anyone)

 

2- is it effecting you in any way?

 

3- My understanding is that, again, the Dealership is the middle man between you, the buyer, and the financing institution-and also the state in regards to licensing and such. You are signing the contract in the presence of the dealership, but ultimately not in the presence of the Financing bank and the the "with," "without recourse" is legalese stipulations that directs/fullfills the contract.

 

Much like how a Check has the words "Pay to the Order of" on it and las time I checked no one is giving orders when they go to a bank to cash it.

 

As an aside, many dealerships also use a standardized contract that may include clauses and terminology for another states laws and have addendums and check boxes that takes that into account..

 

Please see:

http://www2.gsu.edu/~rmipzb/contracts.htm

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