Why this is mistaken
Recourse is a retained obligation and relevant transfer term, not a standalone classification rule. Analyze all current conditions and measure recourse visibly.
Where to watch
When this mistake may appear
- The transfer is with recourse.
- We retained some risk.
Check your work
Your work may contain this mistake if:
- Classifies from recourse label alone.
- Does not measure the obligation.
- Skips other retained control and sale conditions.