Washington Code 16.65.130 – Unlawful use of consignor’s net proceeds
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It shall be unlawful for the licensee to use for his or her own purposes consignor’s net proceeds, or funds received by such licensee to purchase livestock on order, through recourse to the so-called “float” in the bank account, or in any other manner.
Terms Used In Washington Code 16.65.130
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC