Truth in Lending: 2.2.2.6 Obligations to Pay That Are Conditional, for Indeterminate Amounts, or Are Repaid Only Through an Assignment or Security Can Still Be Debts
A related argument to the claim that a “non-recourse” transaction is not credit is the claim that there is no obligation to repay and thus no debt because repayment is to be taken solely from an assignment of, or a security in, the consumer’s money or assets, with no independent or contractual obligation to repay if that security is insufficient. Similarly, lenders may claim that there is no debt if the obligation to repay is contingent on an event that may not happen or the amount of repayment is uncertain. None of these arguments stands up.